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Capital IconMinnesota Legislature
Office of the Revisor of Statutes

HF 2

1st Engrossment - 86th Legislature (2009 - 2010) Posted on 02/09/2010 01:31am

KEY: stricken = removed, old language.
underscored = added, new language.
Version List Authors and Status
Pdf Rtf
Line numbers 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 1.11 1.12 1.13 1.14 1.15 1.16 1.17 1.18 1.19 1.20 1.21 1.22 1.23 1.24 1.25 1.26 1.27 1.28 1.29 1.30 1.31 1.32 1.33 1.34 1.35 1.36 1.37 1.38 1.39 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11 2.12 2.13 2.14 2.15 2.16 2.17 2.18
2.19 2.20
2.21 2.22 2.23 2.24 2.25 2.26 2.27 2.28
2.29 2.30 2.31 2.32 2.33 2.34 2.35 2.36 2.37 2.38 2.39 3.1 3.2 3.3 3.4 3.5
3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13 3.14 3.15 3.16 3.17 3.18 3.19 3.20 3.21 3.22 3.23 3.24 3.25 3.26 3.27 3.28 3.29 3.30 3.31 3.32
3.33 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 4.12 4.13 4.14 4.15 4.16 4.17 4.18 4.19 4.20 4.21 4.22 4.23 4.24 4.25 4.26 4.27 4.28
4.29 4.30 4.31 4.32 4.33 4.34 4.35 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9
5.10 5.11 5.12 5.13 5.14
5.15 5.16 5.17 5.18 5.19 5.20 5.21 5.22 5.23 5.24 5.25 5.26 5.27 5.28 5.29 5.30 5.31 5.32 5.33 5.34 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 6.9 6.10 6.11 6.12 6.13 6.14 6.15 6.16 6.17 6.18 6.19 6.20 6.21 6.22 6.23 6.24 6.25 6.26 6.27 6.28 6.29 6.30 6.31 6.32 6.33 6.34 6.35 6.36 7.1 7.2 7.3 7.4 7.5 7.6 7.7 7.8 7.9 7.10 7.11 7.12 7.13 7.14 7.15 7.16 7.17 7.18 7.19 7.20 7.21
7.22 7.23 7.24 7.25 7.26 7.27 7.28
7.29 7.30 7.31 7.32 7.33 7.34 8.1 8.2 8.3 8.4 8.5 8.6 8.7 8.8 8.9 8.10 8.11 8.12 8.13 8.14 8.15 8.16 8.17 8.18
8.19 8.20 8.21 8.22
8.23 8.24 8.25 8.26 8.27 8.28 8.29 8.30 8.31 8.32 8.33 8.34 9.1 9.2 9.3 9.4 9.5 9.6 9.7 9.8 9.9 9.10 9.11 9.12 9.13 9.14 9.15 9.16 9.17 9.18 9.19 9.20 9.21 9.22 9.23 9.24 9.25 9.26 9.27 9.28 9.29 9.30 9.31 9.32 9.33 9.34 9.35 9.36 10.1 10.2 10.3 10.4 10.5 10.6 10.7 10.8 10.9 10.10 10.11 10.12 10.13 10.14 10.15 10.16 10.17 10.18 10.19 10.20 10.21 10.22 10.23 10.24 10.25 10.26 10.27 10.28 10.29
10.30
10.31 10.32 10.33 10.34 11.1 11.2 11.3 11.4 11.5 11.6 11.7 11.8 11.9 11.10 11.11 11.12 11.13 11.14 11.15 11.16 11.17 11.18 11.19 11.20 11.21 11.22 11.23 11.24 11.25 11.26 11.27 11.28 11.29 11.30
11.31 11.32 11.33 11.34 11.35 12.1 12.2 12.3 12.4 12.5 12.6 12.7 12.8 12.9 12.10 12.11 12.12 12.13 12.14 12.15 12.16 12.17 12.18 12.19 12.20 12.21 12.22 12.23
12.24 12.25 12.26 12.27 12.28 12.29 12.30 12.31 12.32 12.33 12.34 12.35 13.1 13.2 13.3 13.4 13.5 13.6 13.7 13.8 13.9 13.10 13.11 13.12 13.13 13.14 13.15 13.16 13.17 13.18 13.19 13.20 13.21 13.22 13.23 13.24 13.25 13.26
13.27 13.28
13.29 13.30 13.31 13.32 13.33 13.34 13.35 14.1 14.2 14.3 14.4 14.5 14.6 14.7 14.8 14.9 14.10 14.11 14.12 14.13 14.14 14.15 14.16 14.17 14.18 14.19 14.20 14.21 14.22 14.23 14.24 14.25 14.26 14.27 14.28 14.29 14.30 14.31 14.32 14.33 14.34 14.35 14.36 15.1 15.2 15.3 15.4 15.5 15.6 15.7 15.8 15.9 15.10 15.11 15.12 15.13 15.14 15.15 15.16 15.17 15.18 15.19 15.20 15.21 15.22 15.23 15.24 15.25
15.26 15.27 15.28 15.29 15.30 15.31 15.32 15.33 15.34 15.35 16.1 16.2 16.3 16.4 16.5 16.6 16.7 16.8 16.9 16.10 16.11 16.12 16.13 16.14 16.15 16.16 16.17 16.18 16.19
16.20 16.21
16.22 16.23 16.24 16.25 16.26 16.27 16.28 16.29 16.30 16.31 16.32 16.33 16.34 16.35 17.1 17.2 17.3 17.4 17.5 17.6 17.7 17.8 17.9 17.10 17.11
17.12
17.13 17.14 17.15 17.16 17.17 17.18 17.19 17.20 17.21 17.22 17.23 17.24 17.25
17.26 17.27 17.28 17.29 17.30 17.31 17.32 17.33 18.1 18.2 18.3 18.4 18.5 18.6 18.7 18.8 18.9 18.10 18.11 18.12 18.13 18.14 18.15 18.16 18.17 18.18 18.19 18.20 18.21 18.22 18.23 18.24 18.25 18.26 18.27 18.28 18.29 18.30 18.31 18.32 18.33 19.1 19.2 19.3 19.4 19.5 19.6 19.7 19.8 19.9 19.10 19.11 19.12 19.13 19.14 19.15 19.16 19.17 19.18 19.19 19.20 19.21 19.22 19.23 19.24 19.25 19.26 19.27 19.28 19.29 19.30 19.31
19.32 20.1 20.2 20.3 20.4 20.5 20.6 20.7
20.8 20.9
20.10 20.11 20.12 20.13 20.14 20.15 20.16 20.17 20.18 20.19 20.20 20.21 20.22 20.23 20.24 20.25 20.26
20.27 20.28 20.29 20.30 20.31 20.32 20.33 21.1 21.2 21.3 21.4 21.5 21.6 21.7 21.8 21.9 21.10 21.11 21.12 21.13 21.14 21.15 21.16 21.17 21.18 21.19 21.20 21.21 21.22 21.23
21.24 21.25
21.26 21.27 21.28 21.29 21.30 21.31 21.32 21.33 21.34 21.35 22.1 22.2 22.3 22.4 22.5 22.6 22.7 22.8 22.9 22.10 22.11 22.12 22.13 22.14 22.15 22.16 22.17 22.18 22.19 22.20 22.21 22.22 22.23 22.24 22.25 22.26 22.27
22.28 22.29
22.30 22.31 22.32 22.33 22.34 23.1 23.2 23.3 23.4 23.5 23.6 23.7 23.8 23.9 23.10 23.11 23.12 23.13 23.14 23.15 23.16 23.17 23.18 23.19 23.20 23.21 23.22 23.23 23.24 23.25
23.26 23.27 23.28 23.29 23.30 23.31 23.32 23.33 23.34 24.1 24.2 24.3 24.4 24.5 24.6 24.7 24.8 24.9 24.10 24.11 24.12 24.13 24.14 24.15 24.16 24.17 24.18 24.19 24.20 24.21 24.22 24.23 24.24 24.25 24.26 24.27 24.28 24.29 24.30 24.31 24.32 24.33 24.34 24.35 25.1 25.2 25.3 25.4 25.5 25.6 25.7 25.8 25.9 25.10 25.11 25.12 25.13
25.14
25.15 25.16 25.17 25.18 25.19 25.20 25.21 25.22 25.23 25.24 25.25 25.26 25.27 25.28 25.29 25.30 25.31 25.32 25.33 26.1 26.2 26.3 26.4 26.5 26.6 26.7 26.8
26.9 26.10
26.11 26.12 26.13 26.14 26.15 26.16 26.17 26.18 26.19 26.20 26.21 26.22 26.23 26.24 26.25 26.26 26.27 26.28 26.29 26.30 26.31 26.32 26.33 26.34 27.1 27.2 27.3 27.4 27.5 27.6 27.7 27.8 27.9 27.10 27.11 27.12 27.13 27.14 27.15 27.16 27.17 27.18 27.19 27.20 27.21 27.22 27.23 27.24 27.25 27.26 27.27 27.28 27.29 27.30 27.31 27.32 27.33 27.34 27.35 27.36 28.1 28.2 28.3 28.4 28.5 28.6 28.7 28.8 28.9
28.10 28.11 28.12 28.13 28.14 28.15 28.16 28.17 28.18 28.19 28.20 28.21 28.22 28.23 28.24 28.25 28.26 28.27 28.28 28.29 28.30 28.31 28.32 28.33 28.34 28.35 29.1 29.2 29.3 29.4 29.5 29.6 29.7 29.8 29.9 29.10 29.11 29.12 29.13 29.14 29.15 29.16 29.17 29.18 29.19 29.20 29.21 29.22 29.23 29.24 29.25 29.26 29.27 29.28 29.29 29.30 29.31 29.32 29.33 29.34 29.35 29.36 30.1 30.2 30.3 30.4 30.5 30.6 30.7 30.8 30.9 30.10 30.11 30.12 30.13 30.14 30.15 30.16 30.17 30.18 30.19 30.20 30.21 30.22 30.23 30.24 30.25 30.26 30.27 30.28 30.29 30.30 30.31 30.32 30.33 30.34 30.35 30.36 31.1 31.2 31.3 31.4 31.5 31.6 31.7 31.8 31.9 31.10 31.11 31.12 31.13 31.14 31.15 31.16 31.17 31.18 31.19 31.20 31.21 31.22 31.23 31.24 31.25 31.26 31.27 31.28 31.29 31.30 31.31 31.32
31.33 31.34 32.1 32.2 32.3 32.4 32.5 32.6 32.7 32.8 32.9 32.10 32.11 32.12 32.13 32.14 32.15 32.16 32.17 32.18 32.19 32.20 32.21 32.22 32.23 32.24 32.25 32.26 32.27 32.28 32.29 32.30 32.31 32.32 32.33 32.34 32.35 33.1 33.2 33.3 33.4 33.5 33.6 33.7 33.8 33.9 33.10 33.11 33.12 33.13 33.14 33.15
33.16
33.17 33.18 33.19 33.20 33.21 33.22 33.23 33.24 33.25 33.26 33.27 33.28 33.29 33.30 33.31 33.32 33.33 33.34 34.1 34.2 34.3 34.4 34.5 34.6 34.7 34.8 34.9 34.10 34.11 34.12 34.13 34.14 34.15 34.16 34.17 34.18 34.19 34.20 34.21 34.22 34.23 34.24 34.25 34.26 34.27 34.28 34.29 34.30 34.31 34.32 34.33 34.34 35.1 35.2 35.3 35.4 35.5 35.6 35.7 35.8 35.9 35.10 35.11 35.12 35.13 35.14 35.15 35.16 35.17 35.18 35.19 35.20 35.21 35.22 35.23 35.24 35.25 35.26 35.27 35.28 35.29 35.30 35.31 35.32 35.33 35.34 35.35 36.1 36.2 36.3 36.4 36.5 36.6 36.7 36.8 36.9 36.10 36.11 36.12 36.13 36.14 36.15 36.16 36.17 36.18 36.19 36.20 36.21 36.22 36.23 36.24 36.25 36.26 36.27 36.28 36.29 36.30 36.31 36.32 36.33 36.34 36.35 37.1 37.2 37.3 37.4 37.5 37.6 37.7 37.8 37.9 37.10 37.11 37.12 37.13 37.14 37.15 37.16 37.17 37.18 37.19 37.20 37.21 37.22 37.23 37.24 37.25 37.26 37.27 37.28 37.29 37.30 37.31 37.32 37.33 37.34 37.35 37.36 38.1 38.2 38.3 38.4 38.5 38.6 38.7 38.8 38.9 38.10 38.11 38.12 38.13 38.14 38.15 38.16 38.17 38.18 38.19 38.20 38.21 38.22 38.23 38.24 38.25 38.26 38.27 38.28 38.29 38.30 38.31 38.32 38.33 38.34 38.35 39.1 39.2 39.3 39.4 39.5 39.6 39.7 39.8 39.9 39.10 39.11 39.12 39.13 39.14 39.15 39.16 39.17 39.18 39.19 39.20 39.21 39.22 39.23 39.24
39.25 39.26 39.27 39.28 39.29 39.30 39.31 39.32 39.33 39.34
40.1 40.2 40.3 40.4 40.5 40.6 40.7 40.8 40.9 40.10 40.11 40.12 40.13 40.14 40.15 40.16 40.17 40.18 40.19 40.20 40.21 40.22 40.23 40.24 40.25 40.26 40.27 40.28 40.29 40.30 40.31 40.32 40.33 40.34 40.35 40.36 41.1 41.2 41.3 41.4 41.5 41.6 41.7 41.8 41.9 41.10 41.11 41.12 41.13 41.14 41.15 41.16 41.17 41.18 41.19 41.20 41.21 41.22 41.23 41.24 41.25 41.26 41.27 41.28 41.29 41.30
41.31
41.32 41.33 41.34 42.1 42.2 42.3 42.4 42.5 42.6 42.7 42.8 42.9 42.10 42.11 42.12 42.13 42.14 42.15 42.16 42.17 42.18 42.19 42.20 42.21 42.22 42.23 42.24 42.25 42.26 42.27 42.28 42.29 42.30 42.31 42.32 42.33 42.34 42.35 42.36 43.1 43.2 43.3 43.4 43.5 43.6 43.7 43.8 43.9 43.10 43.11 43.12 43.13 43.14 43.15 43.16 43.17 43.18 43.19 43.20 43.21 43.22 43.23 43.24 43.25 43.26 43.27 43.28 43.29 43.30 43.31 43.32 43.33 43.34 43.35 43.36 44.1 44.2 44.3 44.4 44.5 44.6 44.7 44.8 44.9 44.10 44.11 44.12 44.13 44.14 44.15 44.16 44.17 44.18 44.19 44.20 44.21 44.22 44.23 44.24 44.25 44.26 44.27 44.28 44.29 44.30 44.31 44.32 44.33 44.34 44.35 44.36 45.1 45.2 45.3 45.4 45.5 45.6 45.7 45.8 45.9 45.10 45.11 45.12 45.13 45.14 45.15
45.16 45.17 45.18 45.19 45.20 45.21 45.22
45.23 45.24 45.25 45.26 45.27 45.28 45.29 45.30 45.31 45.32 45.33 45.34 46.1 46.2 46.3 46.4 46.5 46.6 46.7 46.8 46.9 46.10 46.11 46.12 46.13 46.14 46.15 46.16 46.17 46.18 46.19 46.20 46.21 46.22 46.23
46.24
46.25 46.26 46.27 46.28 46.29 46.30 46.31 46.32 46.33 46.34 46.35 47.1 47.2 47.3 47.4 47.5 47.6 47.7 47.8 47.9 47.10 47.11 47.12 47.13 47.14 47.15 47.16 47.17 47.18 47.19 47.20 47.21 47.22 47.23 47.24 47.25
47.26 47.27 47.28 47.29 47.30 47.31 47.32 47.33 48.1 48.2 48.3 48.4 48.5 48.6 48.7 48.8
48.9 48.10 48.11 48.12 48.13
48.14 48.15 48.16 48.17 48.18 48.19 48.20 48.21 48.22 48.23 48.24 48.25 48.26 48.27 48.28 48.29 48.30 48.31 48.32 48.33 49.1 49.2 49.3 49.4 49.5 49.6 49.7 49.8 49.9 49.10 49.11 49.12 49.13 49.14
49.15 49.16
49.17 49.18 49.19 49.20 49.21 49.22
49.23 49.24
49.25 49.26 49.27 49.28 49.29 49.30
49.31 49.32
50.1 50.2 50.3 50.4 50.5 50.6
50.7 50.8
50.9 50.10 50.11 50.12 50.13 50.14
50.15 50.16
50.17 50.18 50.19 50.20 50.21 50.22 50.23 50.24 50.25 50.26 50.27 50.28 50.29 50.30 50.31 50.32 51.1 51.2
51.3 51.4
51.5 51.6 51.7 51.8 51.9 51.10 51.11 51.12 51.13 51.14 51.15 51.16 51.17 51.18 51.19 51.20 51.21 51.22 51.23 51.24 51.25 51.26 51.27 51.28 51.29 51.30 51.31 51.32 51.33 51.34 51.35 52.1 52.2 52.3 52.4 52.5 52.6 52.7 52.8 52.9
52.10 52.11 52.12
52.13 52.14 52.15 52.16 52.17 52.18 52.19 52.20 52.21 52.22 52.23 52.24 52.25 52.26 52.27 52.28 52.29 52.30 52.31 52.32 52.33 52.34 52.35 53.1 53.2 53.3 53.4 53.5 53.6 53.7
53.8 53.9
53.10 53.11 53.12 53.13 53.14 53.15 53.16 53.17 53.18 53.19 53.20 53.21 53.22 53.23
53.24 53.25
53.26 53.27 53.28 53.29 53.30 53.31 53.32 54.1 54.2 54.3 54.4 54.5 54.6 54.7 54.8 54.9 54.10 54.11 54.12 54.13 54.14 54.15 54.16 54.17 54.18 54.19 54.20 54.21 54.22 54.23 54.24 54.25 54.26 54.27 54.28 54.29 54.30 54.31 54.32 54.33 54.34 54.35
55.1 55.2 55.3 55.4 55.5 55.6 55.7 55.8 55.9 55.10 55.11 55.12 55.13 55.14 55.15 55.16 55.17 55.18 55.19 55.20 55.21 55.22 55.23 55.24 55.25 55.26 55.27 55.28 55.29 55.30 55.31 55.32 55.33 55.34 55.35 56.1 56.2 56.3 56.4
56.5 56.6 56.7 56.8 56.9 56.10 56.11 56.12 56.13 56.14 56.15 56.16 56.17 56.18 56.19 56.20 56.21 56.22 56.23 56.24
56.25 56.26 56.27 56.28 56.29 56.30 56.31 56.32 56.33 56.34 57.1 57.2 57.3 57.4 57.5 57.6 57.7 57.8 57.9 57.10 57.11 57.12 57.13 57.14 57.15 57.16 57.17 57.18 57.19 57.20 57.21 57.22 57.23 57.24 57.25 57.26 57.27 57.28 57.29 57.30 57.31 57.32 57.33 57.34 57.35 58.1 58.2 58.3 58.4 58.5 58.6 58.7 58.8 58.9 58.10 58.11 58.12 58.13 58.14 58.15 58.16 58.17 58.18 58.19 58.20
58.21
58.22 58.23 58.24 58.25 58.26 58.27 58.28 58.29 58.30 58.31 58.32 58.33 58.34 58.35 59.1 59.2 59.3 59.4 59.5 59.6
59.7
59.8 59.9 59.10 59.11 59.12 59.13 59.14 59.15 59.16 59.17 59.18 59.19 59.20 59.21 59.22 59.23 59.24 59.25 59.26 59.27 59.28 59.29 59.30 59.31 59.32 59.33 59.34 59.35 60.1 60.2 60.3 60.4 60.5 60.6 60.7 60.8 60.9 60.10 60.11 60.12 60.13 60.14 60.15 60.16 60.17 60.18 60.19 60.20 60.21 60.22 60.23 60.24 60.25 60.26 60.27 60.28 60.29 60.30 60.31 60.32 60.33 60.34 60.35 60.36 61.1 61.2 61.3 61.4 61.5 61.6 61.7 61.8 61.9 61.10 61.11 61.12 61.13 61.14 61.15 61.16 61.17 61.18 61.19 61.20 61.21 61.22 61.23 61.24 61.25 61.26 61.27 61.28 61.29 61.30 61.31 61.32 61.33 61.34 61.35 61.36 62.1 62.2 62.3 62.4 62.5 62.6 62.7 62.8
62.9 62.10 62.11 62.12 62.13 62.14 62.15 62.16 62.17 62.18 62.19 62.20 62.21 62.22 62.23 62.24 62.25 62.26 62.27 62.28 62.29 62.30 62.31 62.32 62.33 62.34 63.1 63.2 63.3 63.4 63.5 63.6 63.7 63.8 63.9 63.10 63.11 63.12 63.13 63.14
63.15 63.16
63.17 63.18 63.19 63.20 63.21 63.22
63.23
63.24 63.25 63.26 63.27 63.28 63.29 63.30 63.31 63.32 63.33 64.1 64.2 64.3 64.4 64.5 64.6 64.7 64.8 64.9 64.10 64.11 64.12 64.13 64.14 64.15 64.16 64.17
64.18 64.19 64.20 64.21 64.22 64.23 64.24 64.25 64.26 64.27 64.28 64.29 64.30 64.31 64.32 64.33 64.34 64.35 65.1 65.2 65.3 65.4 65.5 65.6 65.7 65.8 65.9 65.10 65.11 65.12 65.13 65.14 65.15 65.16 65.17 65.18 65.19 65.20 65.21 65.22 65.23 65.24 65.25 65.26 65.27 65.28 65.29 65.30 65.31 65.32 65.33 65.34 65.35 65.36 66.1 66.2 66.3
66.4 66.5 66.6 66.7 66.8 66.9 66.10 66.11 66.12 66.13 66.14 66.15 66.16 66.17 66.18 66.19 66.20 66.21 66.22 66.23 66.24 66.25 66.26 66.27 66.28 66.29 66.30 66.31 66.32 66.33 66.34 67.1 67.2 67.3 67.4 67.5 67.6 67.7 67.8 67.9 67.10 67.11 67.12 67.13 67.14 67.15 67.16 67.17 67.18 67.19 67.20 67.21 67.22 67.23 67.24 67.25 67.26
67.27 67.28 67.29 67.30 67.31 67.32 67.33 67.34 67.35 68.1 68.2 68.3 68.4 68.5 68.6 68.7 68.8 68.9 68.10 68.11 68.12 68.13 68.14 68.15 68.16 68.17
68.18 68.19 68.20 68.21 68.22 68.23 68.24 68.25 68.26 68.27 68.28 68.29 68.30 68.31 68.32 68.33 68.34 68.35
69.1
69.2 69.3 69.4 69.5 69.6 69.7 69.8 69.9 69.10 69.11 69.12 69.13 69.14 69.15 69.16 69.17 69.18 69.19 69.20 69.21 69.22 69.23 69.24 69.25 69.26 69.27 69.28 69.29 69.30 69.31 69.32 69.33 69.34 70.1 70.2 70.3 70.4 70.5 70.6 70.7 70.8 70.9 70.10 70.11 70.12 70.13 70.14 70.15 70.16 70.17 70.18 70.19 70.20 70.21 70.22 70.23 70.24 70.25 70.26 70.27 70.28 70.29 70.30 70.31 70.32 70.33 70.34 70.35 70.36 71.1 71.2 71.3 71.4 71.5 71.6 71.7 71.8 71.9 71.10 71.11 71.12 71.13 71.14 71.15 71.16 71.17 71.18 71.19 71.20 71.21 71.22 71.23 71.24 71.25 71.26 71.27 71.28 71.29 71.30 71.31 71.32 71.33 71.34 71.35 71.36 72.1 72.2 72.3 72.4 72.5 72.6 72.7 72.8 72.9 72.10 72.11 72.12 72.13 72.14 72.15 72.16 72.17 72.18 72.19 72.20 72.21 72.22 72.23 72.24 72.25 72.26 72.27 72.28 72.29 72.30 72.31 72.32 72.33 72.34 72.35 72.36 73.1 73.2 73.3 73.4 73.5 73.6 73.7 73.8 73.9 73.10 73.11 73.12 73.13 73.14 73.15 73.16 73.17 73.18 73.19 73.20 73.21 73.22 73.23 73.24 73.25 73.26 73.27 73.28 73.29 73.30 73.31 73.32 73.33 73.34 73.35 73.36 74.1 74.2 74.3 74.4 74.5 74.6 74.7 74.8 74.9 74.10 74.11 74.12 74.13 74.14 74.15 74.16 74.17 74.18 74.19 74.20 74.21 74.22 74.23 74.24 74.25 74.26 74.27 74.28 74.29 74.30 74.31 74.32 74.33 74.34 74.35 75.1 75.2 75.3 75.4 75.5 75.6 75.7 75.8 75.9 75.10 75.11 75.12 75.13 75.14 75.15 75.16 75.17 75.18 75.19 75.20 75.21 75.22 75.23 75.24 75.25 75.26 75.27 75.28 75.29 75.30 75.31 75.32 75.33 75.34 75.35 75.36 76.1 76.2 76.3 76.4 76.5 76.6 76.7 76.8 76.9 76.10 76.11 76.12 76.13 76.14 76.15 76.16 76.17 76.18 76.19 76.20 76.21 76.22 76.23 76.24 76.25 76.26 76.27 76.28 76.29 76.30 76.31 76.32 76.33 76.34 76.35 76.36 77.1 77.2 77.3 77.4 77.5 77.6 77.7 77.8 77.9 77.10 77.11 77.12 77.13 77.14 77.15 77.16 77.17 77.18 77.19 77.20 77.21 77.22 77.23 77.24 77.25 77.26 77.27 77.28 77.29 77.30 77.31 77.32 77.33 77.34 77.35 77.36 78.1 78.2 78.3 78.4 78.5 78.6 78.7 78.8 78.9 78.10 78.11 78.12 78.13 78.14 78.15 78.16 78.17 78.18 78.19 78.20 78.21 78.22 78.23 78.24 78.25 78.26 78.27 78.28 78.29 78.30 78.31 78.32 78.33 78.34 78.35 78.36 79.1 79.2 79.3 79.4 79.5 79.6 79.7 79.8 79.9 79.10 79.11 79.12 79.13 79.14 79.15 79.16 79.17 79.18 79.19 79.20 79.21 79.22 79.23 79.24 79.25 79.26 79.27 79.28 79.29 79.30 79.31 79.32 79.33 79.34 79.35 79.36 80.1 80.2 80.3 80.4 80.5 80.6 80.7 80.8 80.9 80.10 80.11 80.12 80.13 80.14 80.15 80.16 80.17 80.18 80.19 80.20 80.21 80.22 80.23 80.24 80.25 80.26 80.27 80.28 80.29 80.30 80.31 80.32 80.33 80.34 81.1 81.2 81.3 81.4 81.5 81.6 81.7 81.8 81.9 81.10 81.11 81.12 81.13 81.14 81.15 81.16 81.17 81.18 81.19 81.20 81.21 81.22 81.23 81.24 81.25 81.26 81.27 81.28 81.29 81.30 81.31 81.32 81.33 81.34 81.35 81.36 82.1 82.2 82.3 82.4 82.5 82.6 82.7 82.8 82.9 82.10 82.11 82.12 82.13 82.14 82.15 82.16 82.17 82.18 82.19 82.20 82.21 82.22 82.23 82.24 82.25 82.26 82.27 82.28 82.29 82.30 82.31 82.32 82.33 82.34 82.35 82.36 83.1 83.2 83.3 83.4 83.5 83.6 83.7 83.8 83.9 83.10 83.11 83.12 83.13 83.14 83.15 83.16 83.17 83.18 83.19 83.20 83.21 83.22 83.23 83.24 83.25 83.26 83.27 83.28 83.29 83.30 83.31 83.32 83.33 83.34 83.35 83.36 84.1 84.2 84.3 84.4 84.5 84.6 84.7 84.8 84.9 84.10 84.11 84.12 84.13 84.14 84.15 84.16 84.17 84.18 84.19 84.20 84.21 84.22 84.23 84.24 84.25 84.26 84.27 84.28 84.29 84.30 84.31 84.32 84.33 84.34 84.35 85.1 85.2 85.3 85.4 85.5 85.6 85.7 85.8 85.9 85.10 85.11 85.12 85.13 85.14 85.15 85.16 85.17 85.18 85.19 85.20 85.21 85.22 85.23 85.24 85.25 85.26 85.27 85.28 85.29 85.30 85.31 85.32 85.33 85.34 85.35 85.36 86.1 86.2 86.3 86.4 86.5 86.6 86.7 86.8 86.9 86.10 86.11 86.12 86.13 86.14 86.15 86.16 86.17 86.18 86.19 86.20 86.21 86.22 86.23 86.24 86.25 86.26 86.27 86.28 86.29 86.30 86.31 86.32 86.33 86.34 86.35 86.36 87.1 87.2 87.3 87.4 87.5 87.6 87.7 87.8 87.9 87.10 87.11 87.12 87.13 87.14 87.15 87.16 87.17 87.18 87.19 87.20 87.21 87.22 87.23 87.24 87.25 87.26 87.27 87.28 87.29 87.30 87.31 87.32 87.33 87.34 87.35 88.1 88.2 88.3 88.4 88.5 88.6 88.7 88.8 88.9 88.10 88.11 88.12 88.13 88.14 88.15 88.16 88.17 88.18 88.19 88.20 88.21 88.22 88.23 88.24 88.25 88.26 88.27 88.28 88.29 88.30 88.31 88.32 88.33 88.34 88.35 89.1 89.2 89.3 89.4 89.5 89.6 89.7
89.8 89.9 89.10 89.11 89.12 89.13 89.14 89.15
89.16 89.17 89.18 89.19 89.20 89.21 89.22 89.23 89.24 89.25 89.26 89.27 89.28 89.29 89.30 89.31 89.32 89.33 90.1 90.2 90.3 90.4 90.5 90.6 90.7 90.8 90.9
90.10 90.11
90.12 90.13 90.14 90.15 90.16 90.17 90.18 90.19 90.20 90.21 90.22 90.23 90.24 90.25 90.26 90.27 90.28 90.29 90.30 90.31 90.32 90.33 90.34 90.35 91.1 91.2 91.3 91.4 91.5 91.6 91.7 91.8 91.9 91.10 91.11 91.12 91.13 91.14 91.15 91.16 91.17 91.18 91.19 91.20 91.21 91.22 91.23 91.24 91.25 91.26 91.27 91.28 91.29 91.30 91.31 91.32
91.33 91.34 91.35 92.1 92.2 92.3 92.4 92.5 92.6 92.7 92.8 92.9 92.10 92.11 92.12 92.13 92.14 92.15 92.16 92.17 92.18 92.19 92.20 92.21 92.22 92.23 92.24 92.25
92.26 92.27 92.28 92.29 92.30 92.31 92.32 92.33 92.34 93.1 93.2 93.3 93.4 93.5 93.6 93.7 93.8 93.9 93.10
93.11 93.12 93.13 93.14 93.15 93.16 93.17 93.18 93.19 93.20 93.21
93.22
93.23 93.24 93.25 93.26 93.27 93.28 93.29 93.30 93.31 93.32
94.1 94.2 94.3 94.4 94.5 94.6 94.7 94.8 94.9 94.10 94.11 94.12 94.13 94.14 94.15 94.16 94.17 94.18 94.19 94.20 94.21 94.22 94.23
94.24 94.25 94.26 94.27 94.28 94.29 94.30 94.31 94.32 94.33 94.34 94.35 95.1 95.2 95.3 95.4 95.5
95.6 95.7 95.8 95.9 95.10 95.11 95.12 95.13
95.14 95.15 95.16 95.17 95.18 95.19 95.20 95.21 95.22 95.23 95.24
95.25 95.26
95.27 95.28 95.29 95.30 95.31 95.32 95.33 96.1 96.2 96.3 96.4 96.5 96.6 96.7
96.8 96.9 96.10 96.11 96.12 96.13 96.14 96.15 96.16 96.17 96.18 96.19
96.20 96.21
96.22 96.23 96.24 96.25 96.26 96.27 96.28 96.29 96.30 96.31 96.32 96.33 97.1 97.2 97.3 97.4 97.5 97.6 97.7 97.8 97.9 97.10 97.11
97.12 97.13
97.14 97.15 97.16 97.17 97.18 97.19 97.20 97.21 97.22 97.23 97.24 97.25 97.26 97.27 97.28 97.29 97.30 97.31 97.32 97.33 97.34 98.1 98.2 98.3 98.4 98.5 98.6 98.7
98.8 98.9
98.10 98.11 98.12 98.13 98.14 98.15 98.16 98.17 98.18 98.19 98.20 98.21 98.22 98.23 98.24 98.25 98.26 98.27 98.28 98.29 98.30 98.31 98.32 98.33 98.34 99.1 99.2 99.3 99.4 99.5 99.6 99.7 99.8 99.9 99.10 99.11 99.12 99.13 99.14 99.15 99.16 99.17 99.18 99.19 99.20 99.21 99.22 99.23 99.24 99.25 99.26 99.27 99.28 99.29 99.30 99.31 99.32 99.33 99.34 99.35 99.36 100.1 100.2
100.3 100.4 100.5 100.6 100.7 100.8 100.9 100.10 100.11 100.12 100.13 100.14 100.15 100.16 100.17 100.18 100.19 100.20 100.21 100.22 100.23 100.24 100.25 100.26 100.27 100.28 100.29 100.30 100.31 100.32 100.33 100.34 101.1 101.2
101.3 101.4 101.5 101.6 101.7 101.8 101.9 101.10 101.11 101.12 101.13 101.14 101.15 101.16 101.17 101.18 101.19 101.20 101.21 101.22 101.23 101.24 101.25 101.26 101.27 101.28 101.29 101.30 101.31
101.32
101.33 102.1 102.2 102.3 102.4 102.5 102.6 102.7 102.8 102.9 102.10 102.11 102.12 102.13 102.14 102.15 102.16 102.17 102.18 102.19 102.20 102.21 102.22 102.23 102.24 102.25 102.26 102.27 102.28 102.29 102.30 102.31 102.32 102.33 102.34 102.35 102.36 103.1 103.2 103.3 103.4 103.5 103.6
103.7 103.8 103.9 103.10 103.11 103.12 103.13 103.14 103.15 103.16 103.17 103.18 103.19 103.20 103.21 103.22 103.23 103.24 103.25 103.26 103.27 103.28 103.29 103.30 103.31 103.32 103.33 103.34 103.35 104.1 104.2 104.3 104.4 104.5 104.6 104.7 104.8 104.9 104.10
104.11 104.12 104.13 104.14 104.15 104.16 104.17 104.18 104.19 104.20 104.21 104.22 104.23 104.24 104.25 104.26 104.27 104.28 104.29 104.30 104.31 104.32 104.33 104.34 105.1 105.2 105.3 105.4 105.5 105.6 105.7
105.8 105.9 105.10 105.11 105.12 105.13 105.14 105.15 105.16 105.17 105.18 105.19 105.20 105.21 105.22 105.23 105.24 105.25 105.26 105.27 105.28 105.29 105.30 105.31 105.32
105.33 106.1 106.2 106.3 106.4 106.5 106.6 106.7 106.8 106.9 106.10 106.11 106.12 106.13 106.14 106.15
106.16 106.17 106.18 106.19 106.20 106.21 106.22 106.23 106.24 106.25 106.26 106.27 106.28 106.29 106.30 106.31 106.32 106.33 106.34 106.35 107.1 107.2 107.3 107.4 107.5 107.6 107.7 107.8 107.9 107.10 107.11 107.12 107.13 107.14 107.15 107.16 107.17 107.18 107.19 107.20 107.21 107.22 107.23 107.24 107.25 107.26 107.27 107.28 107.29 107.30 107.31 107.32 107.33 107.34 107.35 107.36 108.1 108.2 108.3 108.4 108.5 108.6
108.7 108.8 108.9
108.10 108.11 108.12 108.13 108.14 108.15 108.16 108.17 108.18 108.19 108.20 108.21 108.22 108.23 108.24 108.25 108.26 108.27
108.28 108.29
108.30 108.31 108.32 108.33 109.1 109.2 109.3 109.4 109.5 109.6 109.7 109.8 109.9 109.10 109.11 109.12 109.13 109.14 109.15
109.16 109.17
109.18 109.19 109.20 109.21 109.22 109.23 109.24 109.25 109.26 109.27 109.28 109.29 109.30 109.31 109.32 109.33 109.34 109.35 110.1 110.2 110.3 110.4 110.5 110.6 110.7 110.8 110.9 110.10 110.11 110.12 110.13 110.14 110.15 110.16 110.17 110.18 110.19 110.20 110.21 110.22 110.23 110.24 110.25 110.26
110.27
110.28 110.29 110.30 110.31 110.32 110.33 110.34 110.35 111.1 111.2 111.3 111.4 111.5 111.6
111.7
111.8 111.9 111.10 111.11 111.12 111.13 111.14 111.15 111.16 111.17 111.18 111.19 111.20 111.21 111.22 111.23 111.24 111.25 111.26 111.27 111.28 111.29 111.30 111.31 112.1 112.2 112.3 112.4 112.5 112.6 112.7 112.8 112.9 112.10 112.11 112.12 112.13 112.14 112.15 112.16 112.17 112.18 112.19 112.20 112.21 112.22 112.23 112.24 112.25 112.26 112.27 112.28 112.29 112.30 112.31 112.32 113.1 113.2 113.3 113.4 113.5 113.6 113.7 113.8 113.9 113.10 113.11 113.12 113.13 113.14 113.15 113.16 113.17 113.18 113.19 113.20 113.21 113.22 113.23 113.24 113.25 113.26 113.27 113.28 113.29 113.30 113.31 113.32 113.33 113.34 114.1 114.2 114.3 114.4 114.5 114.6 114.7 114.8 114.9 114.10 114.11 114.12 114.13 114.14 114.15 114.16 114.17 114.18 114.19 114.20 114.21 114.22 114.23 114.24 114.25 114.26 114.27 114.28 114.29 114.30 114.31 114.32 115.1 115.2 115.3 115.4 115.5 115.6
115.7 115.8 115.9
115.10 115.11
115.12 115.13 115.14 115.15 115.16 115.17 115.18 115.19 115.20 115.21 115.22
115.23 115.24 115.25 115.26 115.27 115.28 115.29 115.30 115.31 115.32 115.33 116.1 116.2 116.3 116.4 116.5 116.6 116.7 116.8 116.9 116.10 116.11 116.12 116.13 116.14 116.15 116.16 116.17 116.18 116.19 116.20
116.21 116.22 116.23 116.24 116.25 116.26 116.27 116.28 116.29 116.30 116.31 116.32 116.33 116.34 116.35 117.1 117.2 117.3 117.4 117.5 117.6 117.7 117.8 117.9 117.10 117.11 117.12 117.13 117.14 117.15 117.16 117.17 117.18
117.19 117.20 117.21 117.22 117.23 117.24 117.25 117.26 117.27 117.28
117.29 117.30 117.31 117.32 117.33 117.34 118.1 118.2 118.3 118.4 118.5 118.6 118.7 118.8 118.9 118.10 118.11 118.12 118.13 118.14 118.15
118.16 118.17 118.18 118.19 118.20 118.21 118.22 118.23 118.24 118.25 118.26 118.27 118.28 118.29 118.30 118.31 118.32 118.33 118.34 118.35 119.1 119.2 119.3 119.4
119.5
119.6 119.7 119.8 119.9 119.10 119.11 119.12 119.13 119.14 119.15 119.16 119.17 119.18 119.19 119.20 119.21 119.22 119.23 119.24 119.25 119.26 119.27 119.28 119.29 119.30 119.31 119.32 119.33 120.1 120.2 120.3 120.4 120.5 120.6 120.7 120.8 120.9 120.10 120.11 120.12 120.13 120.14
120.15 120.16 120.17 120.18 120.19 120.20 120.21 120.22 120.23 120.24 120.25 120.26 120.27 120.28 120.29 120.30 120.31 120.32 120.33 120.34 120.35 121.1 121.2 121.3 121.4 121.5 121.6 121.7 121.8 121.9 121.10 121.11 121.12 121.13 121.14 121.15 121.16 121.17 121.18 121.19 121.20 121.21 121.22 121.23 121.24 121.25 121.26 121.27 121.28 121.29 121.30 121.31 121.32 121.33 121.34 121.35 121.36 122.1 122.2 122.3 122.4 122.5
122.6 122.7 122.8 122.9 122.10 122.11 122.12 122.13 122.14 122.15 122.16 122.17 122.18 122.19 122.20 122.21 122.22 122.23 122.24 122.25 122.26 122.27 122.28 122.29 122.30 122.31 122.32 122.33 122.34 122.35 123.1 123.2 123.3 123.4 123.5 123.6 123.7 123.8 123.9 123.10 123.11 123.12 123.13 123.14 123.15 123.16 123.17 123.18 123.19 123.20 123.21 123.22 123.23 123.24 123.25 123.26 123.27 123.28 123.29 123.30 123.31 123.32 123.33 123.34 123.35 123.36 124.1 124.2 124.3 124.4 124.5 124.6 124.7 124.8 124.9 124.10 124.11 124.12 124.13 124.14 124.15 124.16 124.17 124.18 124.19 124.20 124.21 124.22 124.23 124.24 124.25 124.26 124.27 124.28 124.29 124.30 124.31 124.32 124.33 124.34 124.35 124.36 125.1 125.2 125.3 125.4 125.5 125.6 125.7 125.8 125.9 125.10 125.11 125.12 125.13 125.14 125.15 125.16 125.17 125.18 125.19 125.20 125.21 125.22 125.23 125.24 125.25 125.26 125.27 125.28 125.29 125.30 125.31 125.32 125.33 125.34 125.35 125.36 126.1 126.2 126.3 126.4 126.5 126.6 126.7 126.8 126.9 126.10 126.11 126.12 126.13 126.14 126.15 126.16 126.17 126.18 126.19 126.20 126.21 126.22 126.23 126.24 126.25 126.26 126.27 126.28 126.29 126.30 126.31 126.32 126.33 126.34 126.35 126.36 127.1 127.2 127.3 127.4 127.5 127.6 127.7 127.8 127.9 127.10 127.11 127.12 127.13 127.14 127.15 127.16 127.17 127.18 127.19 127.20 127.21 127.22 127.23 127.24 127.25 127.26 127.27 127.28 127.29 127.30 127.31 127.32 127.33 127.34 127.35 128.1 128.2 128.3 128.4 128.5 128.6 128.7 128.8 128.9 128.10 128.11 128.12 128.13 128.14 128.15 128.16 128.17 128.18 128.19 128.20 128.21 128.22 128.23 128.24 128.25 128.26 128.27 128.28 128.29 128.30 128.31 128.32 128.33 128.34 128.35 128.36 129.1 129.2 129.3 129.4 129.5 129.6 129.7 129.8 129.9 129.10 129.11 129.12 129.13 129.14 129.15 129.16 129.17 129.18 129.19 129.20 129.21 129.22 129.23 129.24 129.25 129.26 129.27 129.28 129.29 129.30 129.31 129.32 129.33 129.34 129.35 130.1 130.2 130.3 130.4 130.5 130.6 130.7 130.8 130.9 130.10 130.11 130.12 130.13 130.14 130.15 130.16 130.17 130.18 130.19 130.20 130.21 130.22 130.23 130.24 130.25 130.26 130.27 130.28 130.29 130.30 130.31 130.32 130.33 130.34 130.35 130.36 131.1 131.2 131.3 131.4 131.5 131.6 131.7 131.8 131.9 131.10 131.11 131.12 131.13 131.14 131.15 131.16 131.17
131.18 131.19 131.20 131.21
131.22
131.23 131.24 131.25 131.26 131.27 131.28 131.29 131.30 131.31 131.32 131.33 131.34 132.1 132.2 132.3 132.4 132.5 132.6 132.7 132.8
132.9
132.10 132.11 132.12 132.13 132.14 132.15 132.16 132.17 132.18 132.19 132.20 132.21 132.22 132.23 132.24 132.25 132.26 132.27 132.28 132.29 132.30 132.31 132.32 132.33 132.34 132.35 133.1 133.2 133.3 133.4 133.5 133.6 133.7 133.8 133.9 133.10 133.11 133.12 133.13 133.14 133.15 133.16 133.17 133.18 133.19 133.20 133.21 133.22 133.23 133.24 133.25 133.26 133.27 133.28 133.29 133.30 133.31 133.32 133.33 133.34 133.35 133.36 134.1 134.2 134.3 134.4 134.5 134.6 134.7 134.8 134.9 134.10 134.11 134.12 134.13 134.14 134.15 134.16 134.17 134.18 134.19 134.20 134.21 134.22 134.23 134.24 134.25 134.26 134.27 134.28 134.29 134.30 134.31 134.32 134.33 134.34 134.35 134.36 135.1 135.2 135.3 135.4 135.5 135.6 135.7 135.8 135.9 135.10 135.11
135.12
135.13 135.14 135.15 135.16 135.17 135.18 135.19 135.20 135.21 135.22 135.23 135.24 135.25 135.26 135.27 135.28 135.29 135.30 135.31 135.32 135.33 135.34 136.1 136.2 136.3 136.4 136.5 136.6 136.7 136.8 136.9 136.10 136.11 136.12 136.13 136.14 136.15 136.16 136.17 136.18 136.19 136.20 136.21 136.22 136.23 136.24 136.25 136.26 136.27 136.28 136.29 136.30 136.31 136.32
136.33
137.1 137.2 137.3 137.4 137.5 137.6 137.7 137.8 137.9 137.10 137.11 137.12 137.13 137.14 137.15 137.16 137.17 137.18 137.19 137.20 137.21 137.22 137.23 137.24 137.25 137.26 137.27 137.28 137.29 137.30 137.31 137.32 137.33 137.34 137.35 138.1 138.2
138.3 138.4 138.5 138.6 138.7 138.8 138.9 138.10 138.11 138.12 138.13 138.14 138.15 138.16 138.17 138.18 138.19 138.20 138.21 138.22 138.23 138.24 138.25 138.26 138.27 138.28 138.29 138.30 138.31 138.32 138.33 138.34 138.35 139.1 139.2 139.3 139.4 139.5 139.6 139.7 139.8 139.9 139.10 139.11 139.12 139.13 139.14 139.15 139.16 139.17 139.18 139.19 139.20 139.21 139.22 139.23 139.24 139.25 139.26 139.27
139.28
139.29 139.30 139.31 139.32 139.33 139.34 140.1 140.2 140.3 140.4 140.5 140.6 140.7 140.8 140.9 140.10 140.11 140.12 140.13 140.14 140.15 140.16 140.17 140.18 140.19 140.20 140.21 140.22 140.23 140.24 140.25 140.26 140.27 140.28 140.29 140.30 140.31 140.32 140.33 140.34 141.1 141.2 141.3 141.4 141.5 141.6 141.7 141.8 141.9 141.10 141.11 141.12 141.13 141.14 141.15 141.16 141.17 141.18 141.19 141.20 141.21 141.22 141.23 141.24 141.25 141.26 141.27 141.28 141.29 141.30 141.31 141.32 141.33 141.34 141.35 141.36 142.1 142.2 142.3 142.4 142.5 142.6 142.7 142.8 142.9 142.10 142.11 142.12 142.13 142.14 142.15 142.16 142.17 142.18 142.19 142.20 142.21 142.22
142.23 142.24 142.25 142.26 142.27 142.28
142.29
142.30 142.31 142.32 142.33 142.34 143.1 143.2 143.3
143.4 143.5 143.6 143.7 143.8 143.9 143.10 143.11 143.12 143.13 143.14 143.15 143.16 143.17
143.18 143.19 143.20 143.21 143.22 143.23 143.24 143.25 143.26 143.27 143.28 143.29 143.30 143.31
143.32 144.1 144.2 144.3 144.4 144.5 144.6 144.7 144.8 144.9 144.10 144.11 144.12 144.13 144.14 144.15 144.16 144.17 144.18 144.19 144.20 144.21 144.22 144.23 144.24 144.25 144.26 144.27 144.28 144.29 144.30 144.31 144.32 145.1 145.2 145.3 145.4 145.5 145.6
145.7 145.8 145.9 145.10 145.11 145.12 145.13 145.14
145.15 145.16
145.17 145.18 145.19 145.20 145.21 145.22 145.23 145.24 145.25 145.26 145.27 145.28 145.29 145.30 145.31 145.32 145.33 146.1 146.2 146.3 146.4 146.5
146.6
146.7 146.8 146.9 146.10 146.11 146.12 146.13 146.14 146.15 146.16 146.17 146.18 146.19 146.20 146.21 146.22 146.23 146.24 146.25 146.26
146.27
146.28 146.29 146.30 146.31 146.32 146.33 147.1 147.2 147.3 147.4 147.5 147.6 147.7 147.8 147.9 147.10 147.11 147.12
147.13
147.14 147.15 147.16 147.17 147.18 147.19 147.20 147.21 147.22 147.23 147.24 147.25 147.26
147.27
147.28 147.29 147.30 147.31 148.1 148.2 148.3
148.4
148.5 148.6 148.7 148.8 148.9 148.10 148.11 148.12 148.13 148.14 148.15 148.16 148.17 148.18 148.19 148.20
148.21 148.22
148.23 148.24 148.25 148.26 148.27 148.28 148.29 148.30 148.31 148.32 148.33 149.1 149.2 149.3 149.4 149.5
149.6
149.7 149.8 149.9 149.10 149.11 149.12 149.13 149.14 149.15 149.16 149.17 149.18 149.19 149.20 149.21 149.22 149.23 149.24 149.25 149.26 149.27 149.28 149.29 149.30 149.31 149.32 149.33 149.34 150.1 150.2 150.3 150.4 150.5 150.6 150.7 150.8 150.9 150.10 150.11 150.12 150.13 150.14 150.15 150.16 150.17 150.18 150.19 150.20 150.21 150.22 150.23 150.24 150.25 150.26 150.27 150.28 150.29 150.30
150.31 150.32 150.33 150.34 151.1 151.2 151.3 151.4 151.5
151.6
151.7 151.8 151.9 151.10 151.11 151.12 151.13 151.14 151.15 151.16 151.17 151.18 151.19 151.20 151.21 151.22 151.23 151.24 151.25 151.26 151.27 151.28 151.29 151.30 151.31 151.32 151.33 151.34 152.1 152.2 152.3 152.4 152.5 152.6 152.7 152.8 152.9 152.10 152.11 152.12 152.13 152.14 152.15 152.16 152.17 152.18 152.19 152.20 152.21 152.22 152.23 152.24 152.25 152.26 152.27 152.28 152.29 152.30 152.31 152.32 152.33 152.34 152.35 152.36 153.1 153.2 153.3 153.4 153.5 153.6 153.7 153.8 153.9 153.10 153.11 153.12 153.13 153.14 153.15 153.16 153.17 153.18 153.19 153.20 153.21
153.22
153.23 153.24 153.25 153.26 153.27 153.28 153.29 153.30 153.31 153.32 154.1 154.2 154.3 154.4 154.5 154.6 154.7 154.8 154.9 154.10 154.11 154.12 154.13 154.14 154.15 154.16 154.17 154.18 154.19 154.20 154.21 154.22 154.23 154.24 154.25 154.26
154.27 154.28
154.29 154.30 154.31 154.32 154.33 155.1 155.2 155.3 155.4 155.5 155.6 155.7 155.8 155.9 155.10
155.11
155.12 155.13 155.14 155.15 155.16 155.17 155.18 155.19 155.20 155.21 155.22 155.23 155.24 155.25 155.26 155.27 155.28 155.29 155.30 155.31 155.32 155.33 155.34 155.35 156.1 156.2 156.3 156.4 156.5
156.6 156.7 156.8 156.9 156.10 156.11 156.12 156.13 156.14 156.15 156.16 156.17 156.18 156.19 156.20 156.21 156.22 156.23 156.24 156.25 156.26 156.27 156.28 156.29 156.30 156.31 156.32 156.33 156.34 156.35 157.1 157.2 157.3 157.4 157.5 157.6 157.7
157.8
157.9 157.10 157.11 157.12 157.13 157.14 157.15 157.16 157.17 157.18 157.19 157.20 157.21 157.22 157.23 157.24 157.25 157.26 157.27 157.28 157.29 157.30 157.31 157.32 157.33 157.34 158.1 158.2 158.3 158.4 158.5 158.6 158.7 158.8
158.9
158.10 158.11 158.12 158.13 158.14 158.15 158.16 158.17 158.18 158.19
158.20
158.21 158.22 158.23 158.24 158.25 158.26 158.27 158.28 158.29 158.30 158.31 158.32
159.1 159.2 159.3 159.4 159.5
159.6 159.7 159.8 159.9 159.10
159.11 159.12 159.13 159.14 159.15 159.16 159.17 159.18 159.19 159.20 159.21 159.22 159.23 159.24 159.25 159.26 159.27 159.28 159.29 159.30 159.31 159.32 159.33 160.1 160.2 160.3 160.4 160.5 160.6 160.7 160.8 160.9 160.10 160.11 160.12 160.13 160.14 160.15 160.16 160.17 160.18 160.19 160.20 160.21 160.22 160.23 160.24 160.25 160.26 160.27 160.28 160.29 160.30 160.31 160.32 160.33 160.34
160.35
161.1 161.2 161.3 161.4 161.5 161.6 161.7 161.8 161.9 161.10 161.11 161.12 161.13 161.14 161.15 161.16
161.17
161.18 161.19 161.20 161.21 161.22 161.23 161.24 161.25 161.26 161.27 161.28 161.29 161.30 161.31 161.32 161.33 161.34 162.1 162.2 162.3 162.4
162.5 162.6
162.7 162.8 162.9 162.10 162.11 162.12 162.13 162.14 162.15 162.16 162.17 162.18 162.19 162.20 162.21 162.22 162.23 162.24 162.25 162.26 162.27 162.28 162.29 162.30 162.31 162.32 162.33 162.34 162.35 162.36 162.37 163.1 163.2 163.3 163.4 163.5 163.6 163.7 163.8 163.9 163.10 163.11 163.12 163.13 163.14 163.15 163.16 163.17 163.18 163.19 163.20 163.21
163.22 163.23 163.24 163.25 163.26 163.27 163.28 163.29 163.30 163.31 163.32 163.33 163.34 163.35 163.36 163.37 163.38
164.1 164.2
164.3 164.4 164.5 164.6 164.7 164.8 164.9 164.10 164.11 164.12 164.13 164.14 164.15
164.16 164.17 164.18 164.19 164.20 164.21 164.22 164.23
164.24 164.25 164.26 164.27 164.28 164.29 164.30
164.31
165.1 165.2 165.3 165.4 165.5 165.6 165.7 165.8 165.9 165.10 165.11 165.12 165.13 165.14 165.15 165.16 165.17 165.18 165.19 165.20 165.21 165.22 165.23 165.24 165.25 165.26 165.27
165.28
165.29 165.30 165.31 165.32 165.33 165.34 165.35 166.1 166.2 166.3 166.4 166.5 166.6 166.7 166.8 166.9 166.10 166.11 166.12 166.13 166.14 166.15 166.16 166.17 166.18 166.19 166.20 166.21 166.22 166.23 166.24 166.25 166.26 166.27 166.28 166.29 166.30 166.31 166.32 166.33 166.34 166.35 167.1 167.2 167.3 167.4 167.5 167.6 167.7 167.8 167.9 167.10 167.11 167.12 167.13 167.14 167.15 167.16 167.17 167.18 167.19 167.20 167.21 167.22 167.23 167.24 167.25 167.26 167.27 167.28 167.29 167.30 167.31 167.32 167.33 167.34 167.35 167.36 168.1 168.2 168.3 168.4 168.5 168.6 168.7 168.8 168.9 168.10 168.11 168.12 168.13 168.14 168.15 168.16 168.17 168.18 168.19 168.20 168.21 168.22 168.23 168.24 168.25 168.26 168.27 168.28 168.29 168.30 168.31 168.32 168.33 168.34 168.35 168.36 169.1 169.2 169.3 169.4 169.5 169.6 169.7 169.8
169.9 169.10
169.11 169.12 169.13 169.14 169.15 169.16 169.17 169.18 169.19 169.20 169.21 169.22 169.23 169.24 169.25 169.26 169.27 169.28 169.29 169.30 169.31 169.32 169.33 169.34 169.35 170.1 170.2 170.3 170.4 170.5 170.6 170.7 170.8 170.9 170.10 170.11 170.12 170.13 170.14 170.15 170.16 170.17 170.18 170.19 170.20 170.21 170.22 170.23 170.24 170.25 170.26 170.27 170.28 170.29 170.30 170.31 170.32 170.33 170.34 170.35 170.36 171.1 171.2 171.3 171.4 171.5 171.6 171.7 171.8 171.9 171.10 171.11 171.12 171.13 171.14 171.15 171.16 171.17 171.18 171.19 171.20 171.21 171.22 171.23 171.24 171.25 171.26 171.27 171.28 171.29 171.30 171.31 171.32 171.33 171.34 171.35 172.1 172.2 172.3 172.4 172.5 172.6 172.7 172.8 172.9 172.10 172.11 172.12 172.13 172.14 172.15 172.16 172.17 172.18 172.19 172.20 172.21 172.22 172.23 172.24 172.25 172.26 172.27
172.28 172.29
172.30 172.31 172.32 172.33 172.34 172.35 173.1 173.2 173.3
173.4
173.5 173.6 173.7 173.8 173.9
173.10
173.11 173.12 173.13 173.14 173.15 173.16 173.17 173.18 173.19 173.20 173.21 173.22 173.23 173.24 173.25 173.26 173.27 173.28 173.29 173.30
174.1 174.2 174.3 174.4 174.5 174.6 174.7 174.8 174.9 174.10 174.11 174.12 174.13 174.14 174.15 174.16 174.17 174.18 174.19 174.20 174.21 174.22 174.23 174.24 174.25 174.26 174.27 174.28 174.29
174.30 174.31 174.32
175.1 175.2
175.3 175.4
175.5 175.6 175.7 175.8 175.9 175.10 175.11 175.12 175.13 175.14 175.15 175.16 175.17 175.18 175.19 175.20
175.21 175.22
175.23 175.24
175.25 175.26 175.27 175.28 175.29 175.30 175.31 176.1 176.2
176.3 176.4 176.5 176.6 176.7 176.8 176.9 176.10
176.11 176.12 176.13 176.14 176.15 176.16 176.17 176.18 176.19 176.20 176.21 176.22 176.23 176.24 176.25 176.26 176.27 176.28 176.29 176.30 176.31 176.32 176.33 177.1 177.2 177.3 177.4 177.5 177.6 177.7 177.8
177.9 177.10 177.11 177.12 177.13 177.14
177.15 177.16 177.17 177.18 177.19 177.20
177.21 177.22
177.23 177.24 177.25 177.26 177.27 177.28 177.29 177.30 177.31 177.32 178.1 178.2 178.3 178.4 178.5 178.6 178.7 178.8 178.9 178.10 178.11 178.12 178.13 178.14 178.15 178.16 178.17 178.18 178.19 178.20 178.21 178.22 178.23 178.24 178.25 178.26 178.27 178.28 178.29 178.30 178.31 178.32 178.33 178.34 178.35 178.36 179.1 179.2 179.3 179.4 179.5 179.6 179.7 179.8 179.9 179.10 179.11 179.12 179.13 179.14 179.15 179.16 179.17 179.18 179.19 179.20 179.21 179.22 179.23 179.24 179.25 179.26 179.27 179.28 179.29 179.30 179.31 179.32 179.33 179.34 180.1 180.2 180.3 180.4 180.5 180.6 180.7 180.8 180.9 180.10 180.11 180.12 180.13 180.14 180.15 180.16 180.17 180.18 180.19 180.20 180.21 180.22 180.23 180.24 180.25 180.26 180.27 180.28 180.29 180.30
180.31
180.32 180.33 180.34 181.1 181.2 181.3 181.4 181.5 181.6 181.7 181.8 181.9 181.10 181.11 181.12 181.13 181.14 181.15 181.16 181.17 181.18 181.19 181.20 181.21 181.22 181.23 181.24 181.25 181.26 181.27 181.28 181.29 181.30 181.31 181.32 181.33 181.34 181.35 182.1 182.2
182.3
182.4 182.5 182.6 182.7 182.8 182.9 182.10 182.11 182.12 182.13 182.14 182.15 182.16 182.17 182.18 182.19 182.20 182.21 182.22 182.23 182.24 182.25 182.26 182.27 182.28 182.29 182.30 182.31 182.32 182.33 182.34 183.1 183.2 183.3 183.4 183.5 183.6 183.7 183.8 183.9 183.10 183.11 183.12 183.13
183.14
183.15 183.16 183.17 183.18 183.19 183.20 183.21 183.22
183.23 183.24 183.25 183.26 183.27 183.28 183.29 183.30 183.31 183.32 183.33 183.34 184.1 184.2 184.3
184.4 184.5 184.6 184.7 184.8 184.9 184.10
184.11 184.12 184.13 184.14 184.15 184.16 184.17 184.18
184.19 184.20
184.21 184.22 184.23 184.24 184.25 184.26 184.27 184.28
184.29 184.30 184.31 185.1 185.2
185.3 185.4 185.5 185.6 185.7 185.8 185.9 185.10 185.11 185.12 185.13 185.14
185.15 185.16 185.17 185.18 185.19 185.20 185.21 185.22 185.23 185.24 185.25 185.26 185.27 185.28 185.29 185.30 185.31 185.32 185.33 186.1 186.2 186.3 186.4 186.5 186.6 186.7 186.8 186.9 186.10 186.11 186.12 186.13 186.14 186.15 186.16 186.17 186.18 186.19 186.20 186.21 186.22 186.23 186.24 186.25 186.26 186.27 186.28 186.29 186.30 186.31 186.32 186.33
186.34 187.1 187.2 187.3 187.4 187.5 187.6 187.7 187.8 187.9 187.10 187.11 187.12 187.13 187.14 187.15 187.16 187.17 187.18 187.19 187.20 187.21 187.22 187.23 187.24 187.25 187.26 187.27 187.28 187.29 187.30 187.31 187.32 187.33 187.34 187.35 187.36 188.1 188.2 188.3 188.4 188.5 188.6 188.7 188.8 188.9 188.10 188.11 188.12 188.13 188.14 188.15 188.16 188.17 188.18 188.19 188.20 188.21 188.22 188.23
188.24
188.25 188.26 188.27 188.28 188.29 188.30 188.31 188.32 188.33 188.34 189.1 189.2 189.3 189.4 189.5 189.6 189.7 189.8 189.9 189.10 189.11 189.12 189.13 189.14 189.15 189.16 189.17 189.18 189.19 189.20 189.21 189.22 189.23 189.24 189.25 189.26 189.27 189.28 189.29 189.30 189.31 189.32 189.33 189.34 189.35 189.36 190.1 190.2 190.3 190.4 190.5 190.6 190.7 190.8 190.9 190.10 190.11 190.12 190.13 190.14 190.15 190.16 190.17 190.18 190.19 190.20 190.21 190.22 190.23 190.24 190.25 190.26 190.27 190.28
190.29
190.30 190.31 190.32 190.33 190.34 191.1 191.2
191.3 191.4 191.5 191.6 191.7 191.8 191.9 191.10 191.11 191.12 191.13 191.14 191.15 191.16 191.17 191.18 191.19 191.20 191.21 191.22 191.23 191.24 191.25 191.26 191.27 191.28 191.29
191.30 191.31 191.32 191.33 192.1 192.2 192.3 192.4 192.5 192.6 192.7 192.8
192.9
192.10 192.11
192.12 192.13 192.14 192.15 192.16 192.17 192.18 192.19 192.20 192.21 192.22 192.23 192.24 192.25 192.26 192.27
192.28
192.29 192.30 192.31 192.32 192.33 193.1 193.2 193.3 193.4 193.5 193.6 193.7 193.8 193.9 193.10 193.11 193.12 193.13 193.14 193.15
193.16
193.17 193.18 193.19 193.20 193.21 193.22 193.23 193.24 193.25 193.26 193.27 193.28 193.29 193.30 193.31 193.32 193.33 193.34 194.1 194.2 194.3 194.4 194.5 194.6 194.7 194.8 194.9 194.10 194.11 194.12 194.13 194.14 194.15 194.16 194.17 194.18 194.19 194.20 194.21 194.22 194.23 194.24 194.25
194.26 194.27
194.28 194.29 194.30 194.31 194.32 194.33 194.34 195.1 195.2 195.3 195.4 195.5 195.6 195.7 195.8 195.9 195.10 195.11 195.12 195.13 195.14 195.15 195.16 195.17 195.18 195.19 195.20 195.21 195.22
195.23 195.24
195.25 195.26 195.27 195.28 195.29 195.30 195.31 195.32 195.33
196.1 196.2
196.3 196.4 196.5 196.6
196.7 196.8
196.9 196.10 196.11 196.12 196.13
196.14 196.15
196.16 196.17 196.18 196.19 196.20 196.21
196.22
196.23 196.24 196.25 196.26 196.27 196.28
196.29
197.1 197.2 197.3 197.4 197.5 197.6 197.7 197.8 197.9 197.10 197.11 197.12 197.13 197.14
197.15 197.16
197.17 197.18 197.19 197.20 197.21 197.22 197.23 197.24 197.25 197.26 197.27 197.28 197.29 197.30 197.31 197.32 197.33 197.34 197.35 198.1 198.2 198.3 198.4 198.5 198.6 198.7 198.8 198.9
198.10 198.11
198.12 198.13 198.14 198.15 198.16 198.17 198.18 198.19 198.20 198.21 198.22 198.23 198.24 198.25 198.26 198.27 198.28 198.29 198.30 198.31 198.32 198.33 198.34 198.35 199.1 199.2 199.3 199.4
199.5 199.6
199.7 199.8 199.9 199.10 199.11 199.12 199.13 199.14 199.15 199.16 199.17 199.18 199.19 199.20 199.21 199.22
199.23 199.24
199.25 199.26 199.27 199.28 199.29 199.30 199.31 199.32
200.1 200.2
200.3 200.4 200.5 200.6 200.7 200.8 200.9 200.10 200.11 200.12 200.13 200.14 200.15 200.16 200.17 200.18 200.19 200.20 200.21 200.22 200.23 200.24 200.25 200.26 200.27 200.28
200.29 200.30
200.31 200.32 200.33 200.34 201.1 201.2 201.3 201.4 201.5
201.6 201.7
201.8 201.9 201.10 201.11 201.12 201.13 201.14 201.15 201.16 201.17 201.18 201.19 201.20 201.21 201.22 201.23 201.24 201.25 201.26
201.27 201.28
201.29 201.30 201.31 201.32 201.33 202.1 202.2 202.3 202.4 202.5 202.6
202.7 202.8
202.9 202.10 202.11 202.12 202.13 202.14 202.15 202.16 202.17 202.18 202.19 202.20
202.21 202.22
202.23 202.24 202.25 202.26 202.27 202.28 202.29 202.30 202.31 202.32 202.33
203.1 203.2
203.3 203.4 203.5 203.6 203.7 203.8 203.9 203.10
203.11 203.12
203.13 203.14 203.15 203.16 203.17 203.18
203.19 203.20
203.21 203.22 203.23 203.24 203.25 203.26 203.27 203.28
203.29 203.30
204.1 204.2 204.3 204.4
204.5 204.6
204.7 204.8 204.9 204.10 204.11 204.12 204.13 204.14 204.15 204.16 204.17 204.18 204.19 204.20 204.21 204.22
204.23 204.24
204.25 204.26 204.27 204.28 204.29 204.30 204.31
204.32 204.33
205.1 205.2 205.3 205.4 205.5 205.6 205.7 205.8 205.9 205.10 205.11 205.12 205.13 205.14 205.15 205.16 205.17 205.18 205.19 205.20 205.21 205.22 205.23 205.24 205.25 205.26 205.27 205.28 205.29 205.30 205.31 205.32 205.33 205.34 205.35 205.36
206.1 206.2
206.3 206.4 206.5 206.6 206.7 206.8 206.9 206.10 206.11 206.12 206.13 206.14 206.15 206.16
206.17 206.18
206.19 206.20 206.21 206.22 206.23 206.24 206.25 206.26 206.27 206.28 206.29 206.30 206.31 206.32 206.33 206.34 207.1 207.2 207.3 207.4 207.5 207.6 207.7 207.8 207.9 207.10 207.11 207.12 207.13 207.14 207.15 207.16 207.17 207.18 207.19 207.20 207.21 207.22 207.23 207.24 207.25 207.26 207.27 207.28 207.29 207.30 207.31 207.32 207.33 207.34 207.35 208.1 208.2 208.3
208.4
208.5 208.6 208.7 208.8 208.9 208.10 208.11 208.12 208.13 208.14 208.15 208.16 208.17
208.18
208.19 208.20 208.21 208.22 208.23 208.24 208.25 208.26 208.27 208.28 208.29 208.30 208.31 208.32 209.1 209.2 209.3 209.4
209.5 209.6
209.7 209.8 209.9 209.10 209.11 209.12 209.13 209.14 209.15 209.16 209.17 209.18 209.19 209.20 209.21 209.22 209.23 209.24 209.25 209.26 209.27 209.28 209.29 209.30 209.31 209.32 209.33 209.34
210.1 210.2
210.3 210.4 210.5 210.6 210.7 210.8 210.9 210.10 210.11 210.12 210.13 210.14
210.15 210.16
210.17 210.18 210.19 210.20 210.21 210.22 210.23 210.24 210.25 210.26 210.27 210.28 210.29
210.30 210.31
210.32 211.1 211.2 211.3 211.4 211.5 211.6 211.7 211.8 211.9 211.10 211.11 211.12 211.13 211.14 211.15 211.16 211.17 211.18 211.19 211.20 211.21 211.22 211.23
211.24 211.25
211.26 211.27 211.28 211.29 211.30 211.31 211.32 211.33 211.34 212.1 212.2 212.3 212.4 212.5 212.6 212.7 212.8 212.9 212.10 212.11 212.12 212.13 212.14 212.15 212.16 212.17 212.18 212.19 212.20
212.21
212.22 212.23 212.24 212.25 212.26 212.27 212.28 212.29 212.30 212.31 212.32 212.33
212.34
213.1 213.2 213.3 213.4 213.5 213.6 213.7
213.8 213.9
213.10 213.11 213.12 213.13 213.14 213.15 213.16 213.17 213.18 213.19 213.20 213.21 213.22 213.23 213.24 213.25 213.26 213.27 213.28 213.29 213.30 213.31 213.32 213.33 213.34 214.1 214.2 214.3 214.4 214.5 214.6 214.7 214.8 214.9 214.10 214.11 214.12 214.13 214.14 214.15 214.16 214.17 214.18 214.19 214.20 214.21 214.22 214.23 214.24 214.25 214.26 214.27 214.28 214.29 214.30 214.31 214.32 214.33 214.34 214.35 214.36 215.1 215.2 215.3
215.4 215.5
215.6 215.7 215.8 215.9 215.10 215.11 215.12 215.13 215.14 215.15 215.16 215.17 215.18 215.19 215.20 215.21 215.22 215.23 215.24 215.25 215.26 215.27 215.28
215.29
215.30 215.31 215.32 216.1 216.2 216.3 216.4 216.5 216.6 216.7 216.8 216.9 216.10 216.11 216.12 216.13 216.14 216.15 216.16 216.17 216.18
216.19
216.20 216.21 216.22 216.23
216.24
216.25 216.26 216.27 216.28 216.29
216.30
217.1 217.2
217.3 217.4 217.5 217.6 217.7 217.8 217.9 217.10 217.11 217.12 217.13
217.14 217.15 217.16 217.17 217.18 217.19 217.20 217.21
217.22 217.23 217.24 217.25 217.26 217.27 217.28 217.29 217.30 217.31
217.32 217.33 218.1 218.2 218.3 218.4 218.5 218.6
218.7 218.8 218.9 218.10 218.11 218.12 218.13 218.14 218.15
218.16 218.17 218.18 218.19 218.20 218.21 218.22 218.23 218.24
218.25 218.26 218.27 218.28 218.29 218.30 218.31 218.32 219.1 219.2
219.3 219.4 219.5 219.6 219.7 219.8 219.9
219.10 219.11 219.12 219.13 219.14 219.15 219.16 219.17 219.18
219.19 219.20 219.21 219.22 219.23 219.24 219.25 219.26 219.27 219.28
219.29 219.30 219.31 219.32 220.1 220.2 220.3 220.4 220.5 220.6
220.7 220.8
220.9 220.10 220.11 220.12 220.13 220.14 220.15 220.16 220.17 220.18 220.19 220.20 220.21 220.22 220.23 220.24 220.25 220.26 220.27 220.28 220.29 220.30 220.31 220.32 220.33 220.34 220.35 221.1 221.2

A bill for an act
 relating to education; providing for policy and funding for family, adult, and
prekindergarten through grade 12 education including general education,
education excellence, special programs, facilities and technology, libraries,
nutrition, accounting, self-sufficiency and lifelong learning, state agencies,
pupil transportation, school finance system changes, forecast adjustments,
and technical corrections; providing for advisory groups; requiring reports;
appropriating money; amending Minnesota Statutes 2008, sections 6.74; 16A.06,
subdivision 11; 120A.40; 120B.02; 120B.021, subdivision 1; 120B.022,
subdivision 1; 120B.023, subdivision 2; 120B.11, subdivision 5; 120B.13;
120B.132; 120B.30; 120B.31; 120B.35; 120B.36; 121A.15, subdivision 8;
121A.41, subdivisions 7, 10; 121A.43; 122A.07, subdivisions 2, 3; 122A.18,
subdivision 4; 122A.31, subdivision 4; 122A.40, subdivisions 6, 8; 122A.41,
subdivisions 3, 5; 122A.413, subdivision 2; 122A.414, subdivisions 2, 2b;
122A.60, subdivisions 1a, 2; 122A.61, subdivision 1; 123A.05; 123A.06;
123A.08; 123B.02, subdivision 21; 123B.03, subdivisions 1, 1a; 123B.10,
subdivision 1; 123B.14, subdivision 7; 123B.143, subdivision 1; 123B.51, by
adding a subdivision; 123B.53, subdivision 5; 123B.57, subdivision 1; 123B.59,
subdivisions 2, 3, 3a; 123B.70, subdivision 1; 123B.71, subdivisions 8, 9,
12; 123B.75, subdivision 5; 123B.76, subdivision 3; 123B.77, subdivision 3;
123B.79, subdivision 7; 123B.81, subdivisions 3, 4, 5; 123B.83, subdivision 3;
123B.92, subdivisions 1, 5; 124D.095, subdivisions 2, 3, 4, 7, 10; 124D.10;
124D.11, subdivisions 4, 9; 124D.111, subdivision 3; 124D.128, subdivisions
2, 3; 124D.42, subdivision 6, by adding a subdivision; 124D.4531; 124D.59,
subdivision 2; 124D.65, subdivision 5; 124D.68, subdivisions 2, 3, 4, 5; 124D.83,
subdivision 4; 124D.86, subdivisions 1, 1a, 1b; 125A.02; 125A.07; 125A.08;
125A.091; 125A.11, subdivision 1; 125A.15; 125A.28; 125A.51; 125A.56;
125A.57, subdivision 2; 125A.62, subdivision 8; 125A.63, subdivisions 2,
4; 125A.76, subdivisions 1, 5; 125A.79, subdivision 7; 125B.26; 126C.01,
by adding subdivisions; 126C.05, subdivisions 1, 2, 3, 5, 6, 8, 15, 16, 17, 20;
126C.10, subdivisions 1, 2, 2a, 3, 4, 6, 13, 14, 18, 24, 34, by adding subdivisions;
126C.13, subdivisions 4, 5; 126C.15, subdivisions 2, 4; 126C.17, subdivisions 1,
5, 6, 9; 126C.20; 126C.40, subdivisions 1, 6; 126C.41, subdivision 2; 126C.44;
127A.08, by adding a subdivision; 127A.441; 127A.45, subdivisions 2, 3, 13, by
adding a subdivision; 127A.47, subdivisions 5, 7; 127A.51; 134.31, subdivision
4a, by adding a subdivision; 169.011, subdivision 71; 169.443, subdivision 9;
169.4501, subdivision 1; 169.4503, subdivision 20, by adding a subdivision;
169.454, subdivision 13; 169A.03, subdivision 23; 171.01, subdivision 22;
171.02, subdivisions 2, 2a, 2b; 171.05, subdivision 2; 171.17, subdivision 1;
171.22, subdivision 1; 171.321, subdivisions 1, 4, 5; 181A.05, subdivision 1;
275.065, subdivisions 3, 6; 299A.297; 471.975; 475.58, subdivision 1; Laws
2007, chapter 146, article 1, section 24, subdivisions 2, as amended, 6, as
amended, 8, as amended; article 2, section 46, subdivision 6, as amended; article
3, section 24, subdivision 4, as amended; article 4, section 16, subdivisions 2, as
amended, 6, as amended; article 5, section 13, subdivisions 2, as amended, 3,
as amended; article 9, section 17, subdivisions 2, as amended, 13, as amended;
Laws 2008, chapter 363, article 2, section 46, subdivision 1; proposing coding
for new law in Minnesota Statutes, chapters 120B; 123B; 125A; 126C; 127A;
repealing Minnesota Statutes 2008, sections 120B.362; 120B.39; 121A.27;
121A.66; 121A.67, subdivision 1; 122A.628; 122A.75; 123B.54; 123B.57,
subdivisions 3, 4, 5; 123B.591; 124D.091; 125A.03; 125A.05; 125A.18;
125A.76, subdivision 4; 125A.79, subdivision 6; 126C.10, subdivisions 2b,
13a, 13b, 24, 25, 26, 27, 28, 29, 30, 31, 31a, 31b, 32, 33, 34, 35, 36; 126C.12;
126C.126; 127A.50; 275.065, subdivisions 5a, 6b, 6c, 8, 9, 10; Minnesota Rules,
parts 3525.0210, subparts 5, 6, 9, 13, 17, 29, 30, 34, 43, 46, 47; 3525.0400;
3525.1100, subpart 2, item F; 3525.2445; 3525.2900, subpart 5; 3525.4220.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

GENERAL EDUCATION

Section 1.

Minnesota Statutes 2008, section 16A.06, subdivision 11, is amended to read:


Subd. 11.

Permanent school fund reporting.

The commissioner shall biannually
report to the Permanent School Fund Advisory Committee and the legislature deleted text begin on the
management of the permanent school trust fund that shows how the commissionerdeleted text end new text begin the
amount of the permanent school fund transfer and information about the investment of the
permanent school fund provided by the State Board of Investment. The State Board of
Investment shall provide information about how theynew text end maximized the long-term economic
return of the permanent school deleted text begin trustdeleted text end fund.

Sec. 2.

Minnesota Statutes 2008, section 120A.40, is amended to read:


120A.40 SCHOOL CALENDAR.

(a) Except for learning programs during summer, flexible learning year programs
authorized under sections 124D.12 to 124D.127, and learning year programs under section
124D.128, a district must not commence an elementary or secondary school year before
Labor Day, except as provided under paragraph (b). Days devoted to teachers' workshops
may be held before Labor Day. Districts that enter into cooperative agreements are
encouraged to adopt similar school calendars.

(b) A district may begin the school year on any day before Labor Daynew text begin :new text end

new text begin (1) new text end to accommodate a construction or remodeling project of $400,000 or more
affecting a district school facilitydeleted text begin .deleted text end new text begin ;new text end

new text begin (2) if the district has an agreement under section 123A.30, 123A.32, or 123A.35
with a district that qualifies under clause (1); or
 new text end

deleted text begin A schooldeleted text end new text begin (3) if thenew text end district deleted text begin thatdeleted text end agrees to the same schedule with a school district
in an adjoining state deleted text begin also may begin the school year before Labor Day as authorized
under this paragraphdeleted text end .

Sec. 3.

Minnesota Statutes 2008, section 122A.60, subdivision 1a, is amended to read:


Subd. 1a.

Effective staff development activities.

(a) Staff development activities
must:

(1) focus on the school classroom and research-based strategies that improve student
learning;

(2) provide opportunities for teachers to practice and improve their instructional
skills over time;

(3) provide opportunities for teachers to use student data as part of their daily work
to increase student achievement;

(4) enhance teacher content knowledge and instructional skills;

(5) align with state and local academic standards;

(6) provide opportunities to build professional relationships, foster collaboration
among principals and staff who provide instruction, and provide opportunities for
teacher-to-teacher mentoring; and

(7) align with the plan of the district or site for an alternative teacher professional
pay system.

Staff development activities may include curriculum development and curriculum training
programs, deleted text begin anddeleted text end activities that provide teachers and other members of site-based teams
training to enhance team performancenew text begin , and basic first aid, focusing on certification for
CPR and the use of automatic external defibrillatorsnew text end . The school district also may
implement other staff development activities required by law and activities associated with
professional teacher compensation models.

(b) Release time provided for teachers to supervise students on field trips and school
activities, or independent tasks not associated with enhancing the teacher's knowledge
and instructional skills, such as preparing report cards, calculating grades, or organizing
classroom materials, may not be counted as staff development time that is financed with
staff development reserved revenue under section 122A.61.

Sec. 4.

Minnesota Statutes 2008, section 122A.61, subdivision 1, is amended to read:


Subdivision 1.

Staff development revenue.

A district is required to reserve
an amount equal to at least two percent of the basic revenue under section 126C.10,
subdivision 2, for in-service education for programs under section 120B.22, subdivision
2, for staff development plans, including plans for challenging instructional activities
and experiences under section 122A.60, and for curriculum development and programs,
other in-service education, teachers' workshops, teacher conferences, the cost of
substitute teachers staff development purposes, preservice and in-service education for
special education professionals and paraprofessionals, and other related costs for staff
development efforts. A district may annually waive the requirement to reserve their basic
revenue under this section if a majority vote of the licensed teachers in the district and
a majority vote of the school board agree to a resolution to waive the requirement. A
district in statutory operating debt is exempt from reserving basic revenue according to
this section. Districts may expend an additional amount of unreserved revenue for staff
development based on their needs. With the exception of amounts reserved for staff
development from revenues allocated directly to school sitesnew text begin and any amounts spent for
first aid or CPR and automatic external defibrillator trainingnew text end , the board must initially
allocate 50 percent of the new text begin remaining new text end reserved revenue to each school site in the district on
a per teacher basis, which must be retained by the school site until used. The board may
retain 25 percent to be used for district wide staff development efforts. The remaining
25 percent of the revenue must be used to make grants to school sites for best practices
methods. A grant may be used for any purpose authorized under section 120B.22,
subdivision 2, 122A.60, or for the costs of curriculum development and programs, other
in-service education, teachers' workshops, teacher conferences, substitute teachers for
staff development purposes, and other staff development efforts, and determined by
the site professional development team. The site professional development team must
demonstrate to the school board the extent to which staff at the site have met the outcomes
of the program. The board may withhold a portion of initial allocation of revenue if the
staff development outcomes are not being met.

Sec. 5.

Minnesota Statutes 2008, section 123B.77, subdivision 3, is amended to read:


Subd. 3.

Statement for comparison and correction.

(a) By November 30 of the
calendar year of the submission of the unaudited financial data, the district must provide to
the commissioner audited financial data for the preceding fiscal year. The audit must be
conducted in compliance with generally accepted governmental auditing standards, the
federal Single Audit Act, and the Minnesota legal compliance guide issued by the Office
of the State Auditor. An audited financial statement prepared in a form which will allow
comparison with and correction of material differences in the unaudited financial data
shall be submitted to the commissioner and the state auditor by December 31. The audited
financial statement must also provide a statement of assurance pertaining to uniform
financial accounting and reporting standards compliance and a copy of the management
letter submitted to the district by the school district's auditor.

(b) By deleted text begin Januarydeleted text end new text begin Februarynew text end 15 of the calendar year following the submission of the
unaudited financial data, the commissioner shall convert the audited financial data
required by this subdivision into the consolidated financial statement format required
under subdivision 1a and publish the information on the department's Web site.

Sec. 6.

Minnesota Statutes 2008, section 123B.83, subdivision 3, is amended to read:


Subd. 3.

Failure to limit expenditures.

If a district does not limit its expenditures in
accordance with this section, the commissioner may so notify the appropriate committees
of the legislature by no later than deleted text begin January 1deleted text end new text begin February 15new text end of the year following the end
of that fiscal year.

Sec. 7.

Minnesota Statutes 2008, section 125A.11, subdivision 1, is amended to read:


Subdivision 1.

Nonresident tuition rate; other costs.

(a) For fiscal year 2006,
when a school district provides instruction and services outside the district of residence,
board and lodging, and any tuition to be paid, shall be paid by the district of residence.
The tuition rate to be charged for any child with a disability, excluding a pupil for whom
tuition is calculated according to section 127A.47, subdivision 7, paragraph (d), must be
the sum of (1) the actual cost of providing special instruction and services to the child
including a proportionate amount for special transportation and unreimbursed building
lease and debt service costs for facilities used primarily for special education, plus (2)
the amount of general education revenue and referendum aid attributable to the pupil,
minus (3) the amount of special education aid for children with a disability received
on behalf of that child, minus (4) if the pupil receives special instruction and services
outside the regular classroom for more than 60 percent of the school day, the amount of
general education revenue and referendum aid, excluding portions attributable to district
and school administration, district support services, operations and maintenance, capital
expenditures, and pupil transportation, attributable to that pupil for the portion of time
the pupil receives special instruction and services outside of the regular classroom. If
the boards involved do not agree upon the tuition rate, either board may apply to the
commissioner to fix the rate. Notwithstanding chapter 14, the commissioner must then set
a date for a hearing or request a written statement from each board, giving each board
at least ten days' notice, and after the hearing or review of the written statements the
commissioner must make an order fixing the tuition rate, which is binding on both school
districts. General education revenue and referendum equalization aid attributable to a
pupil must be calculated using the resident district's average general education revenue
and referendum equalization aid per adjusted pupil unit.

(b) For fiscal year 2007 and later, when a school district provides special instruction
and services for a pupil with a disability as defined in section 125A.02 outside the district
of residence, excluding a pupil for whom an adjustment to special education aid is
calculated according to section 127A.47, subdivision 7, paragraph (e), special education
aid paid to the resident district must be reduced by an amount equal to (1) the actual
cost of providing special instruction and services to the pupil, including a proportionate
amount for special transportation and unreimbursed building lease and debt service costs
for facilities used primarily for special education, plus (2) the amount of general education
revenue and referendum equalization aid attributable to that pupil, calculated using the
resident district's average general education revenue and referendum equalization aid
per adjusted pupil unit excluding basic skills revenue, elementary sparsity revenue and
secondary sparsity revenue, minus (3) the amount of special education aid for children
with a disability received on behalf of that child, minus (4) if the pupil receives special
instruction and services outside the regular classroom for more than 60 percent of the
school day, the amount of general education revenue and referendum equalization aid,
excluding portions attributable to district and school administration, district support
services, operations and maintenance, capital expenditures, and pupil transportation,
attributable to that pupil for the portion of time the pupil receives special instruction
and services outside of the regular classroom, calculated using the resident district's
average general education revenue and referendum equalization aid per adjusted pupil unit
excluding basic skills revenue, elementary sparsity revenue and secondary sparsity revenue
and the serving district's basic skills revenue, elementary sparsity revenue and secondary
sparsity revenue per adjusted pupil unit. Notwithstanding clauses (1) and (4), for pupils
served by a cooperative unit without a fiscal agent school district, the general education
revenue and referendum equalization aid attributable to a pupil must be calculated using
the resident district's average general education revenue and referendum equalization aid
excluding new text begin compensatory revenue, new text end elementary sparsity revenuenew text begin ,new text end and secondary sparsity
revenue. Special education aid paid to the district or cooperative providing special
instruction and services for the pupil must be increased by the amount of the reduction in
the aid paid to the resident district. Amounts paid to cooperatives under this subdivision
and section 127A.47, subdivision 7, shall be recognized and reported as revenues and
expenditures on the resident school district's books of account under sections 123B.75
and 123B.76. If the resident district's special education aid is insufficient to make the full
adjustment, the remaining adjustment shall be made to other state aid due to the district.

(c) Notwithstanding paragraphs (a) and (b) and section 127A.47, subdivision 7,
paragraphs (d) and (e), a charter school where more than 30 percent of enrolled students
receive special education and related services, a site approved under section 125A.515,
an intermediate district, a special education cooperative, or a school district that served
as the applicant agency for a group of school districts for federal special education aids
for fiscal year 2006 may apply to the commissioner for authority to charge the resident
district an additional amount to recover any remaining unreimbursed costs of serving
pupils with a disability. The application must include a description of the costs and the
calculations used to determine the unreimbursed portion to be charged to the resident
district. Amounts approved by the commissioner under this paragraph must be included
in the tuition billings or aid adjustments under paragraph (a) or (b), or section 127A.47,
subdivision 7, paragraph (d) or (e), as applicable.

(d) For purposes of this subdivision and section 127A.47, subdivision 7, paragraphs
(d) and (e), "general education revenue and referendum equalization aid" means the sum
of the general education revenue according to section 126C.10, subdivision 1, excluding
alternative teacher compensation revenue, plus the referendum equalization aid according
to section 126C.17, subdivision 7, as adjusted according to section 127A.47, subdivision
7, paragraphs (a) to (c).

Sec. 8.

Minnesota Statutes 2008, section 126C.05, subdivision 2, is amended to read:


Subd. 2.

Foreign exchange pupils.

Notwithstanding section 124D.02, subdivision
3, or any other law to the contrary, a foreign exchange pupil enrolled in a district under a
cultural exchange program new text begin registered with the Office of the Secretary of State under
section 5A.02 new text end may be counted as a resident pupil for the purposes of this chapter
and chapters 120B, 122A, 123A, 123B, 124D, 125A, and 127A, even if the pupil has
graduated from high school or the equivalent.

Sec. 9.

Minnesota Statutes 2008, section 126C.15, subdivision 2, is amended to read:


Subd. 2.

Building allocation.

(a) A district must allocate its compensatory
revenue to each school building in the district where the children who have generated the
revenue are served unless the school district has received permission under Laws 2005,
First Special Session chapter 5, article 1, section 50, to allocate compensatory revenue
according to student performance measures developed by the school board.

(b) Notwithstanding paragraph (a), a district may allocate up to five percent of the
amount of compensatory revenue that the district receives to school sites according to a
plan adopted by the school board. The money reallocated under this paragraph must be
spent for the purposes listed in subdivision 1, but may be spent on students in any grade,
including students attending school readiness or other prekindergarten programs.

(c) For the purposes of this section and section 126C.05, subdivision 3, "building"
means education site as defined in section 123B.04, subdivision 1.

(d) deleted text begin If the pupil is served at a site other than one owned and operated by the district,
the revenue shall be paid to the district and used for services for pupils who generate
the revenuedeleted text end new text begin Notwithstanding section 123A. 26, subdivision 1, compensatory revenue
generated by students served at a cooperative unit shall be paid to the cooperative unitnew text end .

(e) A district with school building openings, school building closings, changes
in attendance area boundaries, or other changes in programs or student demographics
between the prior year and the current year may reallocate compensatory revenue among
sites to reflect these changes. A district must report to the department any adjustments it
makes according to this paragraph and the department must use the adjusted compensatory
revenue allocations in preparing the report required under section 123B.76, subdivision 3,
paragraph (c).

Sec. 10.

Minnesota Statutes 2008, section 126C.15, subdivision 4, is amended to read:


Subd. 4.

Separate accounts.

Each district new text begin and cooperative unit new text end that receives basic
skills revenue shall maintain separate accounts to identify expenditures for salaries and
programs related to basic skills revenue.

Sec. 11.

Minnesota Statutes 2008, section 126C.17, subdivision 9, is amended to read:


Subd. 9.

Referendum revenue.

(a) The revenue authorized by section 126C.10,
subdivision 1, may be increased in the amount approved by the voters of the district at a
referendum called for the purpose. The referendum may be called by the board or shall be
called by the board upon written petition of qualified voters of the district. The referendum
must be conducted one or two calendar years before the increased levy authority, if
approved, first becomes payable. Only one election to approve an increase may be held
in a calendar year. Unless the referendum is conducted by mail under subdivision 11,
paragraph (a), the referendum must be held on the first Tuesday after the first Monday
in November. The ballot must state the maximum amount of the increased revenue per
resident marginal cost pupil unit. The ballot may state a schedule, determined by the
board, of increased revenue per resident marginal cost pupil unit that differs from year
to year over the number of years for which the increased revenue is authorized or may
state that the amount shall increase annually by the rate of inflation. For this purpose, the
rate of inflation shall be the annual inflationary increase calculated under subdivision 2,
paragraph (b). The ballot may state that existing referendum levy authority is expiring. In
this case, the ballot may also compare the proposed levy authority to the existing expiring
levy authority, and express the proposed increase as the amount, if any, over the expiring
referendum levy authority. The ballot must designate the specific number of years, not to
exceed ten, for which the referendum authorization applies. The ballot, including a ballot
on the question to revoke or reduce the increased revenue amount under paragraph (c),
must abbreviate the term "per resident marginal cost pupil unit" as "per pupil." The notice
required under section 275.60 may be modified to read, in cases of renewing existing
levies at the same amount per pupil as in the previous year:

"BY VOTING "YES" ON THIS BALLOT QUESTION, YOU ARE VOTING
TO EXTEND AN EXISTING PROPERTY TAX REFERENDUM THAT IS
SCHEDULED TO EXPIRE."

The ballot may contain a textual portion with the information required in this
subdivision and a question stating substantially the following:

"Shall the increase in the revenue proposed by (petition to) the board of .........,
School District No. .., be approved?"

If approved, an amount equal to the approved revenue per resident marginal cost
pupil unit times the resident marginal cost pupil units for the school year beginning in
the year after the levy is certified shall be authorized for certification for the number of
years approved, if applicable, or until revoked or reduced by the voters of the district at a
subsequent referendum.

(b) The board must prepare and deliver by first class mail at least 15 days but no more
than 30 days before the day of the referendum to each taxpayer a notice of the referendum
and the proposed revenue increase. The board need not mail more than one notice to any
taxpayer. For the purpose of giving mailed notice under this subdivision, owners must be
those shown to be owners on the records of the county auditor or, in any county where
tax statements are mailed by the county treasurer, on the records of the county treasurer.
Every property owner whose name does not appear on the records of the county auditor
or the county treasurer is deemed to have waived this mailed notice unless the owner
has requested in writing that the county auditor or county treasurer, as the case may be,
include the name on the records for this purpose. The notice must project the anticipated
amount of tax increase in annual dollars for typical residential homesteads, agricultural
homesteads, apartments, and commercial-industrial property within the school district.

The notice for a referendum may state that an existing referendum levy is expiring
and project the anticipated amount of increase over the existing referendum levy in
the first year, if any, in annual dollars for typical residential homesteads, agricultural
homesteads, apartments, and commercial-industrial property within the district.

The notice must include the following statement: "Passage of this referendum will
result in an increase in your property taxes." However, in cases of renewing existing levies,
the notice may include the following statement: "Passage of this referendum extends an
existing operating referendum at the same amount per pupil as in the previous year."

(c) A referendum on the question of revoking or reducing the increased revenue
amount authorized pursuant to paragraph (a) may be called by the board and shall be called
by the board upon the written petition of qualified voters of the district. A referendum to
revoke or reduce the revenue amount must state the amount per resident marginal cost
pupil unit by which the authority is to be reduced. Revenue authority approved by the
voters of the district pursuant to paragraph (a) must be available to the school district at
least once before it is subject to a referendum on its revocation or reduction for subsequent
years. Only one revocation or reduction referendum may be held to revoke or reduce
referendum revenue for any specific year and for years thereafter.

(d) A petition authorized by paragraph (a) or (c) is effective if signed by a number
of qualified voters in excess of deleted text begin 15deleted text end new text begin 30new text end percent of the registered voters of the district on
the day the petition is filed with the board. A referendum invoked by petition must be
held on the date specified in paragraph (a).

(e) The approval of 50 percent plus one of those voting on the question is required to
pass a referendum authorized by this subdivision.

(f) At least 15 days before the day of the referendum, the district must submit a
copy of the notice required under paragraph (b) to the commissioner and to the county
auditor of each county in which the district is located. Within 15 days after the results
of the referendum have been certified by the board, or in the case of a recount, the
certification of the results of the recount by the canvassing board, the district must notify
the commissioner of the results of the referendum.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for petitions filed after July 1, 2009.
 new text end

Sec. 12.

Minnesota Statutes 2008, section 126C.40, subdivision 6, is amended to read:


Subd. 6.

Lease purchase; installment buys.

(a) Upon application to, and approval
by, the commissioner in accordance with the procedures and limits in subdivision 1,
paragraphs (a) and (b), a district, as defined in this subdivision, may:

(1) purchase real or personal property under an installment contract or may lease
real or personal property with an option to purchase under a lease purchase agreement, by
which installment contract or lease purchase agreement title is kept by the seller or vendor
or assigned to a third party as security for the purchase price, including interest, if any; and

(2) annually levy the amounts necessary to pay the district's obligations under the
installment contract or lease purchase agreement.

(b) The obligation created by the installment contract or the lease purchase
agreement must not be included in the calculation of net debt for purposes of section
475.53, and does not constitute debt under other law. An election is not required in
connection with the execution of the installment contract or the lease purchase agreement.

(c) The proceeds of the levy authorized by this subdivision must not be used to
acquire a facility to be primarily used for athletic or school administration purposes.

(d) For the purposes of this subdivision, "district" means:

(1) a school district deleted text begin required to have a comprehensive plan for the elimination of
segregationdeleted text end new text begin which is eligible for revenue under section 124D.86, subdivision 3, clause (1),
(2), or (3), and new text end whose plan has been determined by the commissioner to be in compliance
with Department of Education rules relating to equality of educational opportunity and
school desegregation and, for a district eligible for revenue under section 124D.86,
subdivision 3, clause (4)new text begin or (5)new text end , where the acquisition of property under this subdivision is
determined by the commissioner to contribute to the implementation of the desegregation
plan; or

(2) a school district that participates in a joint program for interdistrict desegregation
with a district defined in clause (1) if the facility acquired under this subdivision is to
be primarily used for the joint program and the commissioner determines that the joint
programs are being undertaken to implement the districts' desegregation plan.

(e) Notwithstanding subdivision 1, the prohibition against a levy by a district to lease
or rent a district-owned building to itself does not apply to levies otherwise authorized
by this subdivision.

(f) For the purposes of this subdivision, any references in subdivision 1 to building
or land shall include personal property.

Sec. 13.

Minnesota Statutes 2008, section 126C.41, subdivision 2, is amended to read:


Subd. 2.

Retired employee health benefits.

new text begin (a) new text end A district may levy an amount up
to the amount the district is required by the collective bargaining agreement in effect
on March 30, 1992, to pay for health insurance or unreimbursed medical expenses for
licensed and nonlicensed employees who have terminated services in the employing
district and withdrawn from active teaching service or other active service, as applicable,
before July 1, 1998, if a sunset clause is in effect for the current collective bargaining
agreement. The total amount of the levy each year may not exceed $600,000.

new text begin (b) In addition to the levy authority granted under paragraph (a), a school district
may levy for other postemployment benefits expenses. For purposes of this subdivision
"postemployment benefits" means benefits giving rise to a liability under Statement No.
45 of the Government Accounting Standards Board. A district seeking levy authority
under this subdivision must:
 new text end

new text begin (1) create or have created an actuarial liability to pay postemployment benefits to
employees or officers after their termination of service;
 new text end

new text begin (2) have a sunset clause in effect for the current collective bargaining agreement
as required by paragraph (a); and
 new text end

new text begin (3) apply for the authority in the form and manner required by the commissioner
of education.
 new text end

new text begin If the total levy authority requested under this paragraph exceeds the amount established
in paragraph (c), the commissioner must proportionately reduce each district's maximum
levy authority under this subdivision.
 new text end

new text begin (c) The maximum levy authority under paragraph (b) must not exceed the following
amounts:
 new text end

new text begin (1) $24,000,000 for taxes payable in 2010;
 new text end

new text begin (2) $50,000,000 for taxes payable in 2011; and
 new text end

new text begin (3) for taxes payable in 2012 and later, the maximum levy authority must not exceed
the sum of the previous year's authority and $19,000,000.
 new text end

Sec. 14.

Minnesota Statutes 2008, section 126C.44, is amended to read:


126C.44 SAFE SCHOOLS LEVY.

(a) Each district may make a levy on all taxable property located within the district
for the purposes specified in this section. The maximum amount which may be levied
for all costs under this section shall be equal to $30 multiplied by the district's adjusted
marginal cost pupil units for the school year. The proceeds of the levy must be reserved and
used for directly funding the following purposes or for reimbursing the cities and counties
who contract with the district for the following purposes: (1) to pay the costs incurred for
the salaries, benefits, and transportation costs of peace officers and sheriffs for liaison in
services in the district's schools; (2) to pay the costs for a drug abuse prevention program
as defined in section 609.101, subdivision 3, paragraph (e), in the elementary schools;
(3) to pay the costs for a gang resistance education training curriculum in the district's
schools; (4) to pay the costs for security in the district's schools and on school property; (5)
to pay the costs for other crime prevention, drug abuse, student and staff safety, voluntary
opt-in suicide prevention tools, and violence prevention measures taken by the school
district; or (6) to pay costs for licensed school counselors, licensed school nurses, licensed
school social workers, licensed school psychologists, and licensed alcohol and chemical
dependency counselors to help provide early responses to problems. For expenditures
under clause (1), the district must initially attempt to contract for services to be provided
by peace officers or sheriffs with the police department of each city or the sheriff's
department of the county within the district containing the school receiving the services. If
a local police department or a county sheriff's department does not wish to provide the
necessary services, the district may contract for these services with any other police or
sheriff's department located entirely or partially within the school district's boundaries.

(b) A school district that is a member of an intermediate school district may
include in its authority under this section the costs associated with safe schools activities
authorized under paragraph (a) for intermediate school district programs. This authority
must not exceed $10 times the adjusted marginal cost pupil units of the member districts.
This authority is in addition to any other authority authorized under this section. Revenue
raised under this paragraph must be transferred to the intermediate school district.

(c) A school district must set aside at least $3 per adjusted marginal cost pupil
unit of the safe schools levy proceeds for the purposes authorized under paragraph (a),
clause (6). The district must annually certifynew text begin eithernew text end thatnew text begin : (1)new text end its total spending on services
provided by the employees listed in paragraph (a), clause (6), is not less than the sum of
its expenditures for these purposes, excluding amounts spent under this section, in the
previous year plus the amount spent under this sectionnew text begin ; or (2) that the district's full-time
equivalent number of employees listed in paragraph (a), clause (6), is not less than the
number for the previous yearnew text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal years 2010
and later.
 new text end

Sec. 15.

Minnesota Statutes 2008, section 127A.47, subdivision 7, is amended to read:


Subd. 7.

Alternative attendance programs.

The general education aid and special
education aid for districts must be adjusted for each pupil attending a nonresident district
under sections 123A.05 to 123A.08, 124D.03, 124D.08, and 124D.68. The adjustments
must be made according to this subdivision.

(a) General education aid paid to a resident district must be reduced by an amount
equal to the referendum equalization aid attributable to the pupil in the resident district.

(b) General education aid paid to a district serving a pupil in programs listed in this
subdivision must be increased by an amount equal to the greater of (1) the referendum
equalization aid attributable to the pupil in the nonresident district; or (2) the product of
the district's open enrollment concentration index, the maximum amount of referendum
revenue in the first tier, and the district's net open enrollment pupil units for that year. A
district's open enrollment concentration index equals the greater of: (i) zero, or (ii) the
lesser of 1.0, or the difference between the district's ratio of open enrollment pupil units
served to its resident pupil units for that year and 0.2. This clause does not apply to a
school district where more than 50 percent of the open enrollment students are enrolled
solely in online learning courses.

(c) If the amount of the reduction to be made from the general education aid of the
resident district is greater than the amount of general education aid otherwise due the
district, the excess reduction must be made from other state aids due the district.

(d) For fiscal year 2006, the district of residence must pay tuition to a district or an
area learning center, operated according to paragraph (f), providing special instruction and
services to a pupil with a disability, as defined in section 125A.02, or a pupil, as defined in
section 125A.51, who is enrolled in a program listed in this subdivision. The tuition must
be equal to (1) the actual cost of providing special instruction and services to the pupil,
including a proportionate amount for special transportation and unreimbursed building
lease and debt service costs for facilities used primarily for special education, minus (2)
if the pupil receives special instruction and services outside the regular classroom for
more than 60 percent of the school day, the amount of general education revenue and
referendum aid attributable to that pupil for the portion of time the pupil receives special
instruction and services outside of the regular classroom, excluding portions attributable to
district and school administration, district support services, operations and maintenance,
capital expenditures, and pupil transportation, minus (3) special education aid attributable
to that pupil, that is received by the district providing special instruction and services.
For purposes of this paragraph, general education revenue and referendum equalization
aid attributable to a pupil must be calculated using the serving district's average general
education revenue and referendum equalization aid per adjusted pupil unit.

(e) For fiscal year 2007 and later, special education aid paid to a resident district
must be reduced by an amount equal to (1) the actual cost of providing special instruction
and services, including special transportation and unreimbursed building lease and debt
service costs for facilities used primarily for special education, for a pupil with a disability,
as defined in section 125A.02, or a pupil, as defined in section 125A.51, who is enrolled
in a program listed in this subdivision, minus (2) if the pupil receives special instruction
and services outside the regular classroom for more than 60 percent of the school day,
the amount of general education revenue and referendum equalization aid attributable
to that pupil for the portion of time the pupil receives special instruction and services
outside of the regular classroom, excluding portions attributable to district and school
administration, district support services, operations and maintenance, capital expenditures,
and pupil transportation, minus (3) special education aid attributable to that pupil, that is
received by the district providing special instruction and services. For purposes of this
paragraph, general education revenue and referendum equalization aid attributable to a
pupil must be calculated using the serving district's average general education revenue
and referendum equalization aid per adjusted pupil unit. Special education aid paid to the
district or cooperative providing special instruction and services for the pupil, or to the
fiscal agent district for a cooperative, must be increased by the amount of the reduction
in the aid paid to the resident district. If the resident district's special education aid is
insufficient to make the full adjustment, the remaining adjustment shall be made to other
state aids due to the district.

(f) An area learning center operated by a service cooperative, intermediate district,
education district, or a joint powers cooperative may elect through the action of the
constituent boards to charge the resident district tuition for pupils rather than to have the
general education revenue paid to a fiscal agent school district. Except as provided in
paragraph (d) or (e), the district of residence must pay tuition equal to at least 90 percent of
the district average general education revenue per pupil unit minus an amount equal to the
product of the formula allowance according to section 126C.10, subdivision 2, times .0485,
calculated without deleted text begin basic skillsdeleted text end new text begin compensatorynew text end revenue and transportation sparsity revenue,
times the number of pupil units for pupils attending the area learning centerdeleted text begin , plus the
amount of compensatory revenue generated by pupils attending the area learning centerdeleted text end .

Sec. 16.

Minnesota Statutes 2008, section 475.58, subdivision 1, is amended to read:


Subdivision 1.

Approval by electors; exceptions.

Obligations authorized by law or
charter may be issued by any municipality upon obtaining the approval of a majority of
the electors voting on the question of issuing the obligations, but an election shall not be
required to authorize obligations issued:

(1) to pay any unpaid judgment against the municipality;

(2) for refunding obligations;

(3) for an improvement or improvement program, which obligation is payable wholly
or partly from the proceeds of special assessments levied upon property specially benefited
by the improvement or by an improvement within the improvement program, or from tax
increments, as defined in section 469.174, subdivision 25, including obligations which are
the general obligations of the municipality, if the municipality is entitled to reimbursement
in whole or in part from the proceeds of such special assessments or tax increments and
not less than 20 percent of the cost of the improvement or the improvement program is to
be assessed against benefited property or is to be paid from the proceeds of federal grant
funds or a combination thereof, or is estimated to be received from tax increments;

(4) payable wholly from the income of revenue producing conveniences;

(5) under the provisions of a home rule charter which permits the issuance of
obligations of the municipality without election;

(6) under the provisions of a law which permits the issuance of obligations of a
municipality without an election;

(7) to fund pension or retirement fund deleted text begin or postemployment benefitdeleted text end liabilities pursuant
to section 475.52, subdivision 6;

(8) under a capital improvement plan under section 373.40; deleted text begin and
deleted text end

(9) under sections 469.1813 to 469.1815 (property tax abatement authority bonds), if
the proceeds of the bonds are not used for a purpose prohibited under section 469.176,
subdivision 4g, paragraph (b)new text begin ; and
new text end

new text begin (10) postemployment benefit liabilities pursuant to section 475.52, subdivision 6, for
municipalities other than school districtsnew text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for obligations sold after August
1, 2009.
 new text end

Sec. 17. new text begin EARLY GRADUATION INCENTIVES PROGRAM WORKING
GROUP.
new text end

new text begin Subdivision 1. new text end

new text begin Commissioner of education to convene. new text end

new text begin The commissioner of
education must convene a working group to study the effects of an early graduation
incentives program for highly motivated high school junior and seniors on Minnesota's
K-12 and Higher Education Systems.
 new text end

new text begin Subd. 2. new text end

new text begin Membership. new text end

new text begin The working group's membership consists of the
commissioner of education, two representatives chosen by the speaker of the house, two
senators named by the Subcommittee on Committees of the senate Committee on Rules
and Administration, one superintendent selected by the Minnesota Association of School
Administrators, one person selected by the Minnesota School Boards Association, two
high school teachers selected by Education Minnesota, one representative of higher
education chosen by the University of Minnesota, one higher education representative
chosen by the Minnesota State Colleges and Universities board, two persons selected by
the Minnesota Private College Council, one person chosen by the Minnesota Council
for the Gifted and Talented, and at least one representative of the business community
selected by the Minnesota Chamber of Commerce.
 new text end

new text begin Subd. 3. new text end

new text begin Duties. new text end

new text begin The working group must evaluate the benefits of an early
graduation incentives program designed to engage highly motivated high school juniors
and seniors. The working group must analyze the potential cost savings to the state and the
impact on, and the interplay with, the state's postsecondary enrollment options program.
 new text end

new text begin Subd. 4. new text end

new text begin Compensation. new text end

new text begin The advisory group is not subject to Minnesota Statutes,
section 15.059.
 new text end

new text begin Subd. 5. new text end

new text begin Report. new text end

new text begin The advisory group must report its recommendations to the
education policy and finance committees of the legislature by January 15, 2010.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 18. new text begin ONETIME GENERAL EDUCATION REVENUE REDUCTION
REPLACED WITH FEDERAL FUNDS FROM THE FISCAL STABILIZATION
ACCOUNT.
new text end

new text begin Subdivision 1. new text end

new text begin General education reduction. new text end

new text begin Notwithstanding Minnesota Statutes,
sections 126C.13 and 126C.20, the state total general education aid for fiscal year 2010 is
reduced by $275,600,000. The aid reduction must be allocated among school districts and
charter schools in proportion to the school district or charter school's general education
revenue for fiscal year 2008 under Minnesota Statutes, section 126C.10, or Minnesota
Statutes, section 124D.11, subdivisions 1 and 2.
 new text end

new text begin Subd. 2. new text end

new text begin Allocation of federal fiscal stabilization funds. new text end

new text begin The commissioner must
offset the onetime general education aid reduction for each school district and charter
school under subdivision 1 with an equal amount of federal aid from the fiscal stabilization
account in the federal fund.
 new text end

Sec. 19. new text begin APPROPRIATIONS; GENERAL FUND.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

new text begin The sums indicated in this section are
appropriated from the general fund to the Department of Education for the fiscal years
designated.
 new text end

new text begin Subd. 2. new text end

new text begin General education aid. new text end

new text begin For general education aid under Minnesota
Statutes, section 126C.13, subdivision 4:
 new text end

new text begin $
 new text end 		new text begin 3,916,460,000
 new text end 		new text begin .....
 new text end 		new text begin 2010
 new text end
new text begin $
 new text end 		new text begin 5,563,965,000
 new text end 		new text begin .....
 new text end 		new text begin 2011
 new text end

new text begin The 2010 appropriation includes $555,864,000 for 2009 and $3,360,596,000 for
2010.
 new text end

new text begin The 2011 appropriation includes $1,438,969,000 for 2010 and $4,124,996,000
for 2011.
 new text end

new text begin Subd. 3. new text end

new text begin Enrollment options transportation. new text end

new text begin For transportation of pupils attending
postsecondary institutions under Minnesota Statutes, section 124D.09, or for transportation
of pupils attending nonresident districts under Minnesota Statutes, section 124D.03:
 new text end

new text begin $
 new text end 		new text begin 48,000
 new text end 		new text begin .....
 new text end 		new text begin 2010
 new text end
new text begin $
 new text end 		new text begin 52,000
 new text end 		new text begin .....
 new text end 		new text begin 2011
 new text end

new text begin Subd. 4. new text end

new text begin Abatement revenue. new text end

new text begin For abatement aid under Minnesota Statutes, section
127A.49:
 new text end

new text begin $
 new text end 		new text begin 980,000
 new text end 		new text begin .....
 new text end 		new text begin 2010
 new text end
new text begin $
 new text end 		new text begin 1,056,000
 new text end 		new text begin .....
 new text end 		new text begin 2011
 new text end

new text begin The 2010 appropriation includes $140,000 for 2009 and $840,000 for 2010.
 new text end

new text begin The 2011 appropriation includes $310,000 for 2010 and $746,000 for 2011.
 new text end

new text begin Subd. 5. new text end

new text begin Consolidation transition. new text end

new text begin For districts consolidating under Minnesota
Statutes, section 123A.485:
 new text end

new text begin $
 new text end 		new text begin 693,000
 new text end 		new text begin .....
 new text end 		new text begin 2010
 new text end
new text begin $
 new text end 		new text begin 931,000
 new text end 		new text begin .....
 new text end 		new text begin 2011
 new text end

new text begin The 2010 appropriation includes $0 for 2009 and $693,000 for 2010.
 new text end

new text begin The 2011 appropriation includes $255,000 for 2010 and $676,000 for 2011.
 new text end

new text begin Subd. 6. new text end

new text begin Nonpublic pupil education aid. new text end

new text begin For nonpublic pupil education aid under
Minnesota Statutes, sections 123B.87 and 123B.40 to 123B.43:
 new text end

new text begin $
 new text end 		new text begin 14,303,000
 new text end 		new text begin .....
 new text end 		new text begin 2010
 new text end
new text begin $
 new text end 		new text begin 17,785,000
 new text end 		new text begin .....
 new text end 		new text begin 2011
 new text end

new text begin The 2010 appropriation includes $1,647,000 for 2009 and $12,656,000 for 2010.
 new text end

new text begin The 2011 appropriation includes $4,680,000 for 2010 and $13,105,000 for 2011.
 new text end

new text begin Subd. 7. new text end

new text begin Nonpublic pupil transportation. new text end

new text begin For nonpublic pupil transportation aid
under Minnesota Statutes, section 123B.92, subdivision 9:
 new text end

new text begin $
 new text end 		new text begin 18,366,000
 new text end 		new text begin .....
 new text end 		new text begin 2010
 new text end
new text begin $
 new text end 		new text begin 22,636,000
 new text end 		new text begin .....
 new text end 		new text begin 2011
 new text end

new text begin The 2010 appropriation includes $2,077,000 for 2009 and $16,289,000 for 2010.
 new text end

new text begin The 2011 appropriation includes $6,024,000 for 2010 and $16,612,000 for 2011.
 new text end

new text begin Subd. 8. new text end

new text begin One-room schoolhouse. new text end

new text begin For a grant to Independent School District No.
690, Warroad, to operate the Angle Inlet School:
 new text end

new text begin $
 new text end 		new text begin 65,000
 new text end 		new text begin .....
 new text end 		new text begin 2010
 new text end
new text begin $
 new text end 		new text begin 65,000
 new text end 		new text begin .....
 new text end 		new text begin 2011
 new text end

new text begin Subd. 9. new text end

new text begin Independent School District No. 239, Rushford-Peterson. new text end

new text begin For school
district flood enrollment impact aid as a result of the floods of August 2007:
 new text end

new text begin $
 new text end 		new text begin 158,000
 new text end 		new text begin .....
 new text end 		new text begin 2010
 new text end

new text begin The base appropriation for later fiscal years is zero.
 new text end

new text begin The district must provide to the commissioner of education documentation of
the additional pupil transportation costs and the number of pupils in average daily
membership lost as a result of the flood.
 new text end

new text begin Subd. 10. new text end

new text begin Lancaster. new text end

new text begin For a grant to Independent School District No. 356, Lancaster,
to replace the loss of sparsity revenue:
 new text end

new text begin $
 new text end 		new text begin 100,000
 new text end 		new text begin .....
 new text end 		new text begin 2010
 new text end
new text begin $
 new text end 		new text begin 100,000
 new text end 		new text begin .....
 new text end 		new text begin 2011
 new text end

new text begin The base appropriation for later fiscal years is zero.
 new text end

new text begin Subd. 11. new text end

new text begin Compensatory revenue pilot project. new text end

new text begin For grants for participation in the
compensatory revenue pilot program under Laws 2005, First Special Session chapter 5,
article 1, section 50:
 new text end

new text begin $
 new text end 		new text begin 2,175,000
 new text end 		new text begin .....
 new text end 		new text begin 2010
 new text end
new text begin $
 new text end 		new text begin 2,175,000
 new text end 		new text begin .....
 new text end 		new text begin 2011
 new text end

new text begin Of this amount, $1,500,000 in each year is for a grant to Independent School District
No. 11, Anoka-Hennepin; $210,000 in each year is for a grant to Independent School
District No. 279, Osseo; $160,000 in each year is for a grant to Independent School
District No. 281, Robbinsdale; $75,000 in each year is for a grant to Independent School
District No. 286, Brooklyn Center; $165,000 in each year is for a grant to Independent
School District No. 535, Rochester; and $65,000 in each year is for a grant to Independent
School District No. 833, South Washington.
 new text end

new text begin If a grant to a specific school district is not awarded, the commissioner may increase
the aid amounts to any of the remaining participating school districts.
 new text end

new text begin This appropriation is part of the base budget for subsequent fiscal years.
 new text end

Sec. 20. new text begin APPROPRIATIONS; FEDERAL FUND.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

new text begin The sums indicated in this section are
appropriated from the fiscal stabilization account in the federal fund to the commissioner
of education for the fiscal years designated.
 new text end

new text begin Subd. 2. new text end

new text begin General education offset. new text end

new text begin To offset the onetime general education revenue
reduction under section 18:
 new text end

new text begin $
 new text end 		new text begin 275,600,000
 new text end 		new text begin .....
 new text end 		new text begin 2010
 new text end

new text begin Any balance does not cancel but is available for obligation until September 30, 2011.
 new text end

ARTICLE 2

EDUCATION EXCELLENCE

Section 1.

Minnesota Statutes 2008, section 6.74, is amended to read:


6.74 INFORMATION COLLECTED FROM LOCAL GOVERNMENTS.

new text begin Subdivision 1. new text end

new text begin Information generally. new text end

The state auditor, or a designated agent, shall
collect annually from all city, county, and other local units of government, information as
to the assessment of property, collection of taxes, receipts from licenses and other sources,
the expenditure of public funds for all purposes, borrowing, debts, principal and interest
payments on debts, and such other information as may be needful. The data shall be
supplied upon forms prescribed by the state auditor, and all public officials so called upon
shall fill out properly and return promptly all forms so transmitted. The state auditor or
assistants, may examine local records in order to complete or verify the information.

new text begin Subd. 2. new text end

new text begin Examples of good government in procurement and shared services;
clearinghouse. new text end

new text begin The state auditor may seek funds from local units of government
and nongovernmental sources to establish an online clearinghouse of examples of
good government in procurement and shared services among political subdivisions. If
established, the clearinghouse shall be designed to allow political subdivisions to submit
examples of good government in procurement and shared services in a form prescribed
by the state auditor.
 new text end

Sec. 2.

Minnesota Statutes 2008, section 120B.02, is amended to read:


120B.02 EDUCATIONAL EXPECTATIONS FOR MINNESOTA'S
STUDENTS.

(a) The legislature is committed to establishing rigorous academic standards for
Minnesota's public school students. To that end, the commissioner shall adopt in rule
statewide academic standards. The commissioner shall not prescribe in rule or otherwise
the delivery system, classroom assessments, or form of instruction that school sites must
use. For purposes of this chapter, a school site is a separate facility, or a separate program
within a facility that a local school board recognizes as a school site for funding purposes.

(b) All commissioner actions regarding the rule must be premised on the following:

(1) the rule is intended to raise academic expectations for students, teachers, and
schools;

(2) any state action regarding the rule must evidence consideration of school district
autonomy; and

(3) the Department of Education, with the assistance of school districts, must make
available information about all state initiatives related to the rule to students and parents,
teachers, and the general public in a timely format that is appropriate, comprehensive, and
readily understandable.

(c) When fully implemented, the requirements for high school graduation in
Minnesota must require students to satisfactorily complete, as determined by the school
district, the course credit requirements under section 120B.024 andnew text begin all state academic
standards or local academic standards where state standards do not apply andnew text end :

(1) for students enrolled in grade 8 before the 2005-2006 school year, to pass the
basic skills test requirements; and

(2) for students enrolled in grade 8 in the 2005-2006 school year and later, to pass
the Minnesota Comprehensive Assessments Second Edition (MCA-IIs).

(d) The commissioner shall periodically review and report on the state's assessment
process.

(e) School districts are not required to adopt specific provisions of the federal
School-to-Work programs.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2012, and applies to
students entering the 9th grade in the 2012-2013 school year and later.
 new text end

Sec. 3.

Minnesota Statutes 2008, section 120B.021, subdivision 1, is amended to read:


Subdivision 1.

Required academic standards.

The following subject areas are
required for statewide accountability:

(1) language arts;

(2) mathematics;

(3) science;

(4) social studies, including history, geography, economics, and government and
citizenship;

(5) health and physical education, for which locally developed academic standards
apply; and

(6) the arts, for which statewide or locally developed academic standards apply,
as determined by the school district. Public elementary and middle schools must offer
deleted text begin at least threedeleted text end and require at least two of the following four arts areas: dance; music;
theater; and visual arts. Public high schoolsnew text begin , consistent with section 120B.024, paragraph
(a), clause (5),new text end must offer deleted text begin at least threedeleted text end and require at least one of the following five arts
areas: media arts; dance; music; theater; and visual arts.

The commissioner must submit proposed standards in science and social studies to
the legislature by February 1, 2004.

For purposes of applicable federal law, the academic standards for language arts,
mathematics, and science apply to all public school studentsdeleted text begin , except the very few students
with extreme cognitive or physical impairments for whom an individualized education
plan team has determined that the required academic standards are inappropriate. An
individualized education plan team that makes this determination must establish alternative
standardsdeleted text end new text begin with appropriate alternate achievement standards based on these academic
standards for students with individualized education plans described under federal lawnew text end .

A school district, no later than the 2007-2008 school year, must adopt graduation
requirements that meet or exceed state graduation requirements established in law or
rule. A school district that incorporates these state graduation requirements before the
2007-2008 school year must provide students who enter the 9th grade in or before
the 2003-2004 school year the opportunity to earn a diploma based on existing locally
established graduation requirements in effect when the students entered the 9th grade.
District efforts to develop, implement, or improve instruction or curriculum as a result
of the provisions of this section must be consistent with sections 120B.10, 120B.11,
and 120B.20.

The commissioner must include the contributions of Minnesota American Indian
tribes and communities as they relate to the academic standards during the review and
revision of the required academic standards.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2009-2010 school year and
later.
 new text end

Sec. 4.

Minnesota Statutes 2008, section 120B.022, subdivision 1, is amended to read:


Subdivision 1.

Elective standards.

(a) A district must establish its own standards in
the following subject areas:

(1) vocational and technical education; and

(2) world languages.

A school district must offer courses in all elective subject areas.

(b) World languages teachers and other school staff should develop and implement
world languages programs that acknowledge and reinforce the language proficiency and
cultural awareness that non-English language speakers already possess, and encourage
students' proficiency in multiple world languages. Programs under this paragraph must
encompass indigenous American Indian languages and cultures, among other world
languages and cultures. The department shall consult with postsecondary institutions in
developing related professional development opportunities.

new text begin (c) Any Minnesota public, charter, or nonpublic school may award Minnesota
World Language Proficiency Certificates or Minnesota World Language Proficiency High
Achievement Certificates, consistent with this subdivision.
 new text end

new text begin The Minnesota World Language Proficiency Certificate recognizes students who
demonstrate listening, speaking, reading, and writing language skills at the American
Council on the Teaching of Foreign Languages' Intermediate-Low level on a valid and
reliable assessment tool. For languages listed as Category 3 by the United States Foreign
Service Institute or Category 4 by the United States Defense Language Institute, the
standard is Intermediate-Low for listening and speaking and Novice-High for reading
and writing.
 new text end

new text begin The Minnesota World Language Proficiency High Achievement Certificate
recognizes students who demonstrate listening, speaking, reading, and writing language
skills at the American Council on the Teaching of Foreign Languages' Pre-Advanced level
for K-12 learners on a valid and reliable assessment tool. For languages listed as Category
3 by the United States Foreign Service Institute or Category 4 by the United States
Defense Language Institute, the standard is Pre-Advanced for listening and speaking and
Intermediate-Mid for reading and writing.
 new text end

Sec. 5.

Minnesota Statutes 2008, section 120B.023, subdivision 2, is amended to read:


Subd. 2.

Revisions and reviews required.

(a) The commissioner of education must
revise and appropriately embed technology and information literacy standards consistent
with recommendations from school media specialists into the state's academic standards
and graduation requirements and implement a review cycle for state academic standards
and related benchmarks, consistent with this subdivision. During each review cycle, the
commissioner also must examine the alignment of each required academic standard and
related benchmark with the knowledge and skills students need for college readiness and
advanced work in the particular subject area.

(b) The commissioner in the 2006-2007 school year must revise and align the state's
academic standards and high school graduation requirements in mathematics to require
that students satisfactorily complete the revised mathematics standards, beginning in the
2010-2011 school year. Under the revised standards:

(1) students must satisfactorily complete an algebra I credit by the end of eighth
grade; and

(2) students scheduled to graduate in the 2014-2015 school year or later must
satisfactorily complete an algebra II credit or its equivalent.

The commissioner also must ensure that the statewide mathematics assessments
administered to students in grades 3 through 8 and 11 beginning in the 2010-2011
school year are aligned with the state academic standards in mathematics. The statewide
11th grade mathematics test administered to students under clause (2) beginning in
the 2013-2014 school year must include algebra II test items that are aligned with
corresponding state academic standards in mathematics. The commissioner must
implement a review of the academic standards and related benchmarks in mathematics
beginning in the 2015-2016 school year.

(c) The commissioner in the 2007-2008 school year must revise and align the state's
academic standards and high school graduation requirements in the arts to require that
students satisfactorily complete the revised arts standards beginning in the deleted text begin 2010-2011deleted text end new text begin
2011-2012new text end school year. The commissioner must implement a review of the academic
standards and related benchmarks in arts beginning in the deleted text begin 2016-2017deleted text end new text begin 2017-2018new text end school
year.

(d) The commissioner in the 2008-2009 school year must revise and align the state's
academic standards and high school graduation requirements in science to require that
students satisfactorily complete the revised science standards, beginning in the deleted text begin 2011-2012deleted text end new text begin
2012-2013new text end school year. Under the revised standards, students scheduled to graduate in the
deleted text begin 2014-2015deleted text end new text begin 2015-2016new text end school year or later must satisfactorily complete a chemistry or
physics credit. The commissioner must implement a review of the academic standards and
related benchmarks in science beginning in the deleted text begin 2017-2018deleted text end new text begin 2018-2019new text end school year.

(e) The commissioner in the deleted text begin 2009-2010deleted text end new text begin 2010-2011new text end school year must revise and
align the state's academic standards and high school graduation requirements in language
arts to require that students satisfactorily complete the revised language arts standards
beginning in the deleted text begin 2012-2013deleted text end new text begin 2013-2014new text end school year. The commissioner must implement
a review of the academic standards and related benchmarks in language arts beginning
in the deleted text begin 2018-2019deleted text end new text begin 2019-2020new text end school year.

(f) The commissioner in the deleted text begin 2010-2011deleted text end new text begin 2011-2012new text end school year must revise and
align the state's academic standards and high school graduation requirements in social
studies to require that students satisfactorily complete the revised social studies standards
beginning in the deleted text begin 2013-2014deleted text end new text begin 2014-2015new text end school year. The commissioner must implement
a review of the academic standards and related benchmarks in social studies beginning
in the deleted text begin 2019-2020deleted text end new text begin 2020-2021new text end school year.

(g) School districts and charter schools must revise and align local academic
standards and high school graduation requirements in health, physical education, world
languages, and career and technical education to require students to complete the revised
standards beginning in a school year determined by the school district or charter school.
School districts and charter schools must formally establish a periodic review cycle for
the academic standards and related benchmarks in health, physical education, world
languages, and career and technical education.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 6.

Minnesota Statutes 2008, section 120B.11, subdivision 5, is amended to read:


Subd. 5.

Report.

(a) By October 1 of each year, the school board shall use standard
statewide reporting procedures the commissioner develops and adopt a reportnew text begin , consistent
with section 120B.36, subdivision 1,new text end that includes the following:

(1) student achievement goals for meeting state academic standards;

(2) results of local assessment data, and any additional test data;

(3) the annual school district improvement plans including staff development goals
under section 122A.60;

(4) information about district and learning site progress in realizing previously
adopted improvement plans; and

(5) the amount and type of revenue attributed to each education site as defined
in section 123B.04.

(b) The school board shall publish the report in the local newspaper with the largest
circulation in the district, by mail, or by electronic means such as the district Web site. If
electronic means are used, school districts must publish notice of the report in a periodical
of general circulation in the district. School districts must make copies of the report
available to the public on request. deleted text begin The board shall make a copy of the report available to
the public for inspection. The board shall send a copy of the report to the commissioner
of education by October 15 of each year.
deleted text end

(c) deleted text begin The title of the report shall contain the name and number of the school district and
read "Annual Report on Curriculum, Instruction, and Student Achievement."deleted text end The report
must include at least the following information about advisory committee membership:

(1) the name of each committee member and the date when that member's term
expires;

(2) the method and criteria the school board uses to select committee members; and

(3) the date by which a community resident must apply to next serve on the
committee.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2009-2010 school year and
later.
 new text end

Sec. 7.

Minnesota Statutes 2008, section 120B.13, is amended to read:


120B.13 ADVANCED PLACEMENT deleted text begin ANDdeleted text end new text begin ,new text end INTERNATIONAL
BACCALAUREATEnew text begin , AND CONCURRENT ENROLLMENTnew text end PROGRAMS.

Subdivision 1.

Program structure; training programs for teachers.

(a) The
advanced placement deleted text begin anddeleted text end new text begin ,new text end international baccalaureatenew text begin , and concurrent enrollmentnew text end programs
are well-established academic programs for mature, academically directed high school
students. These programs, in addition to providing academic rigor, offer sound curricular
design, accountability, comprehensive external assessment, feedback to students and
teachers, and the opportunity for high school students to compete academically on a
global level. Advanced placement deleted text begin anddeleted text end new text begin ,new text end international baccalaureatenew text begin , and concurrent
enrollmentnew text end programs allow students to leave high school with the academic skills
and self-confidence to succeed in college and beyond. The advanced placement deleted text begin anddeleted text end new text begin ,new text end
international baccalaureatenew text begin , and concurrent enrollmentnew text end programs help provide Minnesota
students with world-class educational opportunity.

(b) Critical to schools' educational success is ongoing deleted text begin advanced
placement/international baccalaureate-approved teacherdeleted text end trainingnew text begin for teachers instructing
students in the advanced placement, international baccalaureate, and concurrent enrollment
programsnew text end . A secondary teacher assigned by a district to teach an advanced placement or
international baccalaureate course or other interested educator may participate in a training
program offered by The College Board or International Baccalaureate North America, Inc.
new text begin A secondary teacher assigned by a district to teach a concurrent enrollment course, or other
interested educator, may participate in a training program offered by the eligible public
postsecondary institution with which the district has entered into an agreement according
to section 124D.09, subdivision 3, paragraph (a). new text end The state may pay a portion of the tuition,
room, board, and out-of-state travel costs a teacher or other interested educator incurs
in participating in a training program. The commissioner shall determine application
procedures and deadlines, select teachers and other interested educators to participate in
the training program, and determine the payment process and amount of the subsidy.
The procedures determined by the commissioner shall, to the extent possible, ensure
that advanced placement deleted text begin anddeleted text end new text begin ,new text end international baccalaureatenew text begin , and concurrent enrollmentnew text end
courses become available in all parts of the state and that a variety of course offerings are
available in school districts. This subdivision does not prevent teacher or other interested
educator participation in training programs offered by The College Board or International
Baccalaureate North America, Inc., when tuition is paid by a source other than the state.

new text begin (c) The commissioner may award state-funded competitive grants designed to create
advanced placement summer training institutes for secondary teachers. Two-year grants,
beginning and ending on October 1, may be awarded to Minnesota institutions of higher
education that comply with the training requirements outlined by the College Board. The
commissioner shall determine award criteria and the selection process.
 new text end

Subd. 2.

Support programs.

The commissioner shall provide support programs
during the school year for teachers who attended the training programs and teachers
experienced in teaching advanced placement deleted text begin ordeleted text end new text begin ,new text end international baccalaureatenew text begin , or concurrent
enrollmentnew text end courses. The support programs shall provide teachers with opportunities to
share instructional ideas with other teachers. The state may pay the costs of participating
in the support programs, including substitute teachers, if necessary, and program affiliation
costs.

Subd. 3.

Subsidy for examination fees.

The state may pay all or part of the fee for
advanced placement or international baccalaureate examinations. The commissioner shall
pay all examination fees for all public and nonpublic students of low-income families, as
defined by the commissioner, and to the limit of the available appropriation, shall also pay
a portion or all of the examination fees for other public and nonpublic students sitting for
an advanced placement examination, international baccalaureate examination, or both.
The commissioner shall determine procedures for state payments of fees.

Subd. 3a.

College credit.

The colleges and universities of the Minnesota State
Colleges and Universities system must award, and the University of Minnesota and private
postsecondary institutions are encouraged to award, college credit to high school students
who receive a score of three or higher on an advanced placement or four or higher on the
international baccalaureate program examination.

Subd. 4.

Information.

The commissioner shall submit the following information to
the education committees of the legislature each year by February 1:

(1) the number of pupils enrolled in advanced placement deleted text begin anddeleted text end new text begin ,new text end international
baccalaureatenew text begin , and concurrent enrollmentnew text end courses in each school district;

(2) the number of teachers in each district attending training programs offered by the
college board or International Baccalaureate North America, Inc.;

(3) the number of teachers in each district participating in support programs;

(4) recent trends in the field of advanced placement deleted text begin anddeleted text end new text begin ,new text end international baccalaureatenew text begin ,
and concurrent enrollmentnew text end programs;

(5) expenditures for each category in this section; and

(6) other recommendations for the state program.

Sec. 8.

Minnesota Statutes 2008, section 120B.132, is amended to read:


120B.132 RAISED ACADEMIC ACHIEVEMENT; ADVANCED
PLACEMENT deleted text begin ANDdeleted text end new text begin ,new text end INTERNATIONAL BACCALAUREATEnew text begin , AND
CONCURRENT ENROLLMENTnew text end PROGRAMS.

Subdivision 1.

Establishment; eligibility.

A program is established to raise
kindergarten through grade 12 academic achievement through increased student
participation in preadvanced placement, advanced placement, deleted text begin anddeleted text end international
baccalaureatenew text begin , and concurrent enrollmentnew text end programs, consistent with section 120B.13.
Schools and charter schools eligible to participate under this section:

(1) must have a three-year plan approved by the local school board to establish a new
international baccalaureate program leading to international baccalaureate authorization,
expand an existing program that leads to international baccalaureate authorization, or
expand an existing authorized international baccalaureate program; or

(2) must have a three-year plan approved by the local school board to create a new or
expand an existing program to implement the college board advanced placement courses
and exams or preadvanced placement initiative; deleted text begin anddeleted text end new text begin ornew text end

new text begin (3) must have a three-year plan approved by the local school board to create a new
or expand an existing concurrent enrollment program; and
 new text end

deleted text begin (3)deleted text end new text begin (4)new text end must propose to further raise students' academic achievement by:

(i) increasing the availability of and all students' access to advanced placement deleted text begin ordeleted text end new text begin ,new text end
international baccalaureatenew text begin , or concurrent enrollmentnew text end courses or programs;

(ii) expanding the breadth of advanced placement deleted text begin ordeleted text end new text begin ,new text end international baccalaureatenew text begin , or
concurrent enrollmentnew text end courses or programs that are available to students;

(iii) increasing the number and the diversity of the students who participate in
advanced placement deleted text begin ordeleted text end new text begin ,new text end international baccalaureatenew text begin , or concurrent enrollmentnew text end courses
or programs and succeed;

(iv) providing low-income and other disadvantaged students with increased access
to advanced placement deleted text begin ordeleted text end new text begin ,new text end international baccalaureatenew text begin , or concurrent enrollmentnew text end courses
and programs; or

(v) increasing the number of high school students, including low-income and other
disadvantaged students, who receive college credit by successfully completing advanced
placement deleted text begin ordeleted text end new text begin ,new text end international baccalaureatenew text begin , or concurrent enrollmentnew text end courses or programs
and achieving satisfactory scores on related exams.

Subd. 2.

Application and review process; funding priority.

(a) Charter schools
and school districts in which eligible schools under subdivision 1 are located may apply to
the commissioner, in the form and manner the commissioner determines, for competitive
funding to further raise students' academic achievement. The application must detail the
specific efforts the applicant intends to undertake in further raising students' academic
achievement, consistent with subdivision 1, and a proposed budget detailing the district or
charter school's current and proposed expenditures for advanced placement, preadvanced
placement, deleted text begin anddeleted text end international baccalaureatenew text begin , and concurrent enrollmentnew text end courses and
programs. The proposed budget must demonstrate that the applicant's efforts will support
implementation of advanced placement, preadvanced placement, deleted text begin anddeleted text end international
baccalaureatenew text begin , and concurrent enrollmentnew text end courses and programs. Expenditures for
administration must not exceed five percent of the proposed budget. The commissioner
may require an applicant to provide additional information.

(b) When reviewing applications, the commissioner must determine whether
the applicant satisfied all the requirements in this subdivision and subdivision 1.
The commissioner may give funding priority to an otherwise qualified applicant that
demonstrates:

(1) a focus on developing or expanding preadvanced placement, advanced placement,
deleted text begin ordeleted text end international baccalaureatenew text begin , or concurrent enrollmentnew text end courses or programs or increasing
students' participation in, access to, or success with the courses or programs, including the
participation, access, or success of low-income and other disadvantaged students;

(2) a compelling need for access to preadvanced placement, advanced placement, deleted text begin ordeleted text end
international baccalaureatenew text begin , or concurrent enrollmentnew text end courses or programs;

(3) an effective ability to actively involve local business and community
organizations in student activities that are integral to preadvanced placement, advanced
placement, deleted text begin ordeleted text end international baccalaureatenew text begin , or concurrent enrollmentnew text end courses or programs;

(4) access to additional public or nonpublic funds or in-kind contributions that are
available for preadvanced placement, advanced placement, deleted text begin ordeleted text end international baccalaureatenew text begin ,
or concurrent enrollmentnew text end courses or programs; or

(5) an intent to implement activities that target low-income and other disadvantaged
students.

Subd. 3.

Funding; permissible funding uses.

(a) The commissioner shall award
grants to applicant school districts and charter schools that meet the requirements of
subdivisions 1 and 2. The commissioner must award grants on an equitable geographical
basis to the extent feasible and consistent with this section. Grant awards must not exceed
the lesser of:

(1) $85 times the number of pupils enrolled at the participating sites on October
1 of the previous fiscal year; or

(2) the approved supplemental expenditures based on the budget submitted under
subdivision 2. For charter schools in their first year of operation, the maximum funding
award must be calculated using the number of pupils enrolled on October 1 of the current
fiscal year. The commissioner may adjust the maximum funding award computed using
prior year data for changes in enrollment attributable to school closings, school openings,
grade level reconfigurations, or school district reorganizations between the prior fiscal
year and the current fiscal year.

(b) School districts and charter schools that submit an application and receive
funding under this section must use the funding, consistent with the application, to:

(1) provide teacher training and instruction to more effectively serve students,
including low-income and other disadvantaged students, who participate in preadvanced
placement, advanced placement, deleted text begin ordeleted text end international baccalaureatenew text begin , or concurrent enrollmentnew text end
courses or programs;

(2) further develop preadvanced placement, advanced placement, deleted text begin ordeleted text end international
baccalaureatenew text begin , or concurrent enrollmentnew text end courses or programs;

(3) improve the transition between grade levels to better prepare students, including
low-income and other disadvantaged students, for succeeding in preadvanced placement,
advanced placement, deleted text begin ordeleted text end international baccalaureatenew text begin , or concurrent enrollmentnew text end courses or
programs;

(4) purchase books and supplies;

(5) pay course or program fees;

(6) increase students' participation in and success with preadvanced placement,
advanced placement, deleted text begin ordeleted text end international baccalaureatenew text begin , or concurrent enrollmentnew text end courses or
programs;

(7) expand students' access to preadvanced placement, advanced placement, deleted text begin ordeleted text end
international baccalaureatenew text begin , or concurrent enrollmentnew text end courses or programs through online
learning;

(8) hire appropriately licensed personnel to teach additional advanced placement deleted text begin ordeleted text end
international baccalaureatenew text begin , or concurrent enrollmentnew text end courses or programs; or

(9) engage in other activity directly related to expanding students' access to,
participation in, and success with preadvanced placement, advanced placement, deleted text begin ordeleted text end
international baccalaureatenew text begin , or concurrent enrollmentnew text end courses or programs, including
low-income and other disadvantaged students.

Subd. 4.

Annual reports.

(a) Each school district and charter school that receives
a grant under this section annually must collect demographic and other student data to
demonstrate and measure the extent to which the district or charter school raised students'
academic achievement under this program and must report the data to the commissioner
in the form and manner the commissioner determines. The commissioner annually by
February 15 must make summary data about this program available to the education
policy and finance committees of the legislature.

(b) Each school district and charter school that receives a grant under this section
annually must report to the commissioner, consistent with the Uniform Financial
Accounting and Reporting Standards, its actual expenditures for advanced placement,
preadvanced placement, deleted text begin anddeleted text end international baccalaureatenew text begin , and concurrent enrollmentnew text end
courses and programs. The report must demonstrate that the school district or charter
school has maintained its effort from other sources for advanced placement, preadvanced
placement, deleted text begin anddeleted text end international baccalaureatenew text begin , and concurrent enrollmentnew text end courses and
programs compared with the previous fiscal year, and the district or charter school has
expended all grant funds, consistent with its approved budget.

new text begin Subd. 5. new text end

new text begin Accreditation of concurrent enrollment programs. new text end

new text begin (a) To establish a
uniform standard by which concurrent enrollment courses and professional development
activities may be measured, postsecondary institutions are encouraged to apply for
accreditation by the National Alliance of Concurrent Enrollment Partnership.
 new text end

new text begin (b) Beginning in fiscal year 2011, districts offering a concurrent enrollment program
according to an agreement under section 124D.09, subdivision 10, are only eligible for aid
under this section and section 120B.13, if the college or university concurrent enrollment
courses offered by the district are accredited by the National Alliance of Concurrent
Enrollment Partnership, in the process of being accredited, or are shown by clear evidence
to be of comparable standard to accredited courses.
 new text end

Sec. 9.

new text begin [120B.299] DEFINITIONS.
 new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin The definitions in this section apply to this chapter.
 new text end

new text begin Subd. 2. new text end

new text begin Growth. new text end

new text begin "Growth" compares the difference in a student's achievement
score at two or more distinct points in time.
 new text end

new text begin Subd. 3. new text end

new text begin Value added. new text end

new text begin "Value added" is the amount of achievement a student
demonstrates above an established baseline. The difference between the student's score
and the baseline defines value added.
 new text end

new text begin Subd. 4. new text end

new text begin Value-added growth. new text end

new text begin "Value-added growth" is based on a student's
growth score. In a value-added growth system, the student's first test is the baseline, and
the difference between the student's first and next test scores within a defined period is the
measure of value added. Value-added growth models use student-level data to measure
what portion of a student's growth can be explained by inputs related to the educational
environment.
 new text end

new text begin Subd. 5. new text end

new text begin Adequate yearly progress. new text end

new text begin A school or district makes "adequate yearly
progress" if, for every student subgroup under the federal 2001 No Child Left Behind
Act in the school or district, its proficiency index or other approved adjustments for
performance, based on statewide assessment scores, meets or exceeds federal expectations.
To make adequate yearly progress, the school or district also must satisfy applicable
federal requirements related to student attendance, graduation, and test participation rates.
 new text end

new text begin Subd. 6. new text end

new text begin State growth target. new text end

new text begin (a) "State growth target" is the average year-two
assessment scores for students with similar year-one assessment scores.
 new text end

new text begin (b) The state growth targets for each grade and subject are benchmarked as follows
until the assessment scale changes:
 new text end

new text begin (1) beginning in the 2008-2009 school year, the state growth target for grades 3 to 8
is benchmarked to 2006-2007 and 2007-2008 school year data;
 new text end

new text begin (2) beginning in the 2008-2009 school year the state growth target for grade 10 is
benchmarked to 2005-2006 and 2006-2007 school year data;
 new text end

new text begin (3) for the 2008-2009 school year, the state growth target for grade 11 is
benchmarked to 2005-2006 school year data; and
 new text end

new text begin (4) beginning in the 2009-2010 school year, the state growth target for grade 11 is
benchmarked to 2005-2006 and 2006-2007 school year data.
 new text end

new text begin (c) Each time before the assessment scale changes, a stakeholder group that includes
assessment and evaluation directors and staff and researchers must recommend a new
state growth target that the commissioner must consider when revising standards under
section 120B.023, subdivision 2.
new text end

new text begin Subd. 7. new text end

new text begin Low growth. new text end

new text begin "Low growth" is an assessment score one-half standard
deviation below the state growth target.
 new text end

new text begin Subd. 8. new text end

new text begin Medium growth. new text end

new text begin "Medium growth" is an assessment score within one-half
standard deviation above or below the state growth target.
 new text end

new text begin Subd. 9. new text end

new text begin High growth. new text end

new text begin "High growth" is an assessment score one-half standard
deviation or more above the state growth target.
 new text end

new text begin Subd. 10. new text end

new text begin Proficiency. new text end

new text begin "Proficiency" for purposes of reporting growth on school
performance report cards under section 120B.36, subdivision 1, means those students
who, in the previous school year, scored at or above "meets standards" on the statewide
assessments under section 120B.30. Each year, school performance report cards must
separately display: (1) the numbers and percentages of students who achieved low growth,
medium growth, and high growth and achieved proficiency in the previous school year;
and (2) the numbers and percentages of students who achieved low growth, medium
growth, and high growth and did not achieve proficiency in the previous school year.
 new text end

new text begin Subd. 11. new text end

new text begin Growth and progress toward proficiency. new text end

new text begin The categories of low
growth, medium growth, and high growth shall be used to indicate both (1) growth and (2)
progress toward grade-level proficiency that is consistent with subdivision 10.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 10.

Minnesota Statutes 2008, section 120B.30, is amended to read:


120B.30 STATEWIDE TESTING AND REPORTING SYSTEM.

Subdivision 1.

Statewide testing.

(a) The commissioner, with advice from experts
with appropriate technical qualifications and experience and stakeholders, consistent with
subdivision 1a, shall include in the comprehensive assessment system, for each grade
level to be tested, state-constructed tests developed deleted text begin from anddeleted text end new text begin to be computer-adaptive
reading and mathematics assessments for general education students that arenew text end aligned with
the state's required academic standards under section 120B.021new text begin , include both multiple
choice and constructed response questions,new text end and new text begin are new text end administered annually to all students
in grades 3 through 8 deleted text begin and at the high school leveldeleted text end . deleted text begin Adeleted text end State-developed deleted text begin testdeleted text end new text begin high school
tests aligned with the state's required academic standards under section 120B.021 and
administered to all high school students new text end in a subject other than writingdeleted text begin , developed after
the 2002-2003 school year,deleted text end must include both deleted text begin machine-scoreabledeleted text end new text begin multiple choicenew text end and
constructed response questions. The commissioner shall establish one or more months
during which schools shall administer the tests to students each school year. new text begin Schools
that the commissioner identifies for stand-alone field testing or other national sampling
must participate as directed. Superintendents or charter school directors may appeal in
writing to the commissioner for an exemption from a field test based on undue hardship.
The commissioner's decision regarding the appeal is final. new text end For students enrolled in
grade 8 before the 2005-2006 school year, deleted text begin onlydeleted text end Minnesota basic skills tests in reading,
mathematics, and writing shall fulfill students' basic skills testing requirements for a
passing state notation. The passing scores of basic skills tests in reading and mathematics
are the equivalent of 75 percent correct for students entering grade 9 deleted text begin in 1997 and
thereafter, asdeleted text end based on the first uniform test deleted text begin administration ofdeleted text end new text begin administered innew text end February
1998.new text begin Students who have not successfully passed a Minnesota basic skills test by the end
of the 2011-2012 school year must pass the graduation-required assessments for diploma
under paragraph (b).
new text end

(b) For students enrolled in grade 8 in the 2005-2006 school year and later, only the
following options shall fulfill students' state graduation test requirements:

(1) for reading and mathematics:

(i) obtaining an achievement level equivalent to or greater than proficient as
determined through a standard setting process on the Minnesota comprehensive
assessments in grade 10 for reading and grade 11 for mathematics or achieving a passing
score as determined through a standard setting process on the graduation-required
assessment for diploma in grade 10 for reading and grade 11 for mathematics or
subsequent retests;

(ii) achieving a passing score as determined through a standard setting process on the
state-identified language proficiency test in reading and the mathematics test for English
language learners or the graduation-required assessment for diploma equivalent of those
assessments for students designated as English language learners;

(iii) achieving an individual passing score on the graduation-required assessment
for diploma as determined by appropriate state guidelines for students with an individual
education plan or 504 plan;

(iv) obtaining achievement level equivalent to or greater than proficient as
determined through a standard setting process on the state-identified alternate assessment
or assessments in grade 10 for reading and grade 11 for mathematics for students with
an individual education plan; or

(v) achieving an individual passing score on the state-identified alternate assessment
or assessments as determined by appropriate state guidelines for students with an
individual education plan; and

(2) for writing:

(i) achieving a passing score on the graduation-required assessment for diploma;

(ii) achieving a passing score as determined through a standard setting process on
the state-identified language proficiency test in writing for students designated as English
language learners;

(iii) achieving an individual passing score on the graduation-required assessment
for diploma as determined by appropriate state guidelines for students with an individual
education plan or 504 plan; or

(iv) achieving an individual passing score on the state-identified alternate assessment
or assessments as determined by appropriate state guidelines for students with an
individual education plan.

(c) new text begin Students enrolled in grade 8 in any school year from the 2005-2006 school
year to the 2009-2010 school year who do not pass the mathematics graduation-required
assessment for diploma under paragraph (b) are eligible to receive a high school diploma
with a passing state notation if they:
new text end

new text begin (1) complete with a passing score or grade all state and local coursework and credits
required for graduation by the school board granting the students their diploma;
 new text end

new text begin (2) participate in district-prescribed academic remediation in mathematics; and
 new text end

new text begin (3) fully participate in at least two retests of the mathematics GRAD test or until
they pass the mathematics GRAD test, whichever comes first. A school board issuing a
student a high school diploma in any school year from the 2009-2010 school year through
the 2013-2014 school year must record on the student's high school transcript the student's
score as the total number of test items and the number of test items the student answered
correctly on the mathematics graduation-required assessment for diploma under this
subdivision.
 new text end

new text begin In addition, the school board granting the students their diplomas may formally
decide to include a notation of high achievement on the high school diplomas of those
graduating seniors who, according to established school board criteria, demonstrate
exemplary academic achievement during high school.
 new text end

new text begin (d) new text end The 3rd through 8th grade new text begin computer-adaptive assessments new text end and high school deleted text begin leveldeleted text end
test results shall be available to districts for diagnostic purposes affecting student learning
and district instruction and curriculum, and for establishing educational accountability.
The commissioner must disseminate to the public the new text begin computer-adaptive assessments and
high school new text end test results upon receiving those results.

deleted text begin (d) Statedeleted text end new text begin (e) The 3rd through 8th grade computer-adaptive assessments and
high schoolnew text end tests must be deleted text begin constructed anddeleted text end aligned with state academic standards. Thenew text begin
commissioner shall determine thenew text end testing process and the order of administration deleted text begin shall be
determined by the commissionerdeleted text end . The statewide results shall be aggregated at the site and
district level, consistent with subdivision 1a.

deleted text begin (e)deleted text end new text begin (f)new text end In addition to the testing and reporting requirements under this section, the
commissioner shall include the following components in the statewide public reporting
system:

(1) uniform statewide testing of all students in grades 3 through 8 and at the high
school level that provides appropriate, technically sound accommodationsdeleted text begin ,deleted text end new text begin ornew text end alternate
assessmentsdeleted text begin , or exemptions consistent with applicable federal law, only with parent or
guardian approval, for those very few students for whom the student's individual education
plan team under sections 125A.05 and 125A.06 determines that the general statewide test
is inappropriate for a student, or for a limited English proficiency student under section
124D.59, subdivision 2deleted text end ;

(2) educational indicators that can be aggregated and compared across school
districts and across time on a statewide basis, including average daily attendance, high
school graduation rates, and high school drop-out rates by age and grade level;

(3) state results on the American College Test; and

(4) state results from participation in the National Assessment of Educational
Progress so that the state can benchmark its performance against the nation and other
states, and, where possible, against other countries, and contribute to the national effort
to monitor achievement.

Subd. 1a.

Statewide and local assessments; results.

(a) new text begin For purposes of this
section, the following definitions have the meanings given them.
new text end

new text begin (1) "Computer-adaptive assessments" means fully adaptive assessments or partially
adaptive assessments.
 new text end

new text begin (2) "Fully adaptive assessments" include test items that are on-grade level and items
that may be above or below a student's grade level.
 new text end

new text begin (3) "Partially adaptive assessments" include two portions of test items, where one
portion is limited to on-grade level test items and a second portion includes test items that
are on-grade level or above or below a student's grade level.
 new text end

new text begin (4) "On-grade level" test items contain subject area content that is aligned to state
academic standards for the grade level of the student taking the assessment.
 new text end

new text begin (5) "Above-grade level" test items contain subject area content that is above the grade
level of the student taking the assessment and are considered aligned with state academic
standards to the extent they are aligned with content represented in state academic
standards above the grade level of the student taking the assessment. Notwithstanding
the student's grade level, administering above-grade level test items to a student does not
violate the requirement that state assessments must be aligned with state standards.
 new text end

new text begin (6) "Below-grade level" test items contain subject area content that is below
the grade level of the student taking the test and are considered aligned with state
academic standards to the extent they are aligned with content represented in state
academic standards below the student's current grade level. Notwithstanding the student's
grade level, administering below-grade level test items to a student does not violate the
requirement that state assessments must be aligned with state standards.
 new text end

new text begin (b) The commissioner must use fully adaptive assessments to the extent no net loss
of federal and state funds occurs as a result of using these assessments. If a net loss of
federal and state funds were to occur under this subdivision, then the commissioner must
use partially adaptive assessments to meet existing federal educational accountability
requirements.
 new text end

new text begin (c) For purposes of conforming with existing federal educational accountability
requirements, new text end the commissioner must developnew text begin and implement computer-adaptivenew text end readingdeleted text begin ,deleted text end new text begin
andnew text end mathematicsdeleted text begin , and sciencedeleted text end assessments new text begin for grades 3 through 8, state-developed
high school reading and mathematics tests new text end aligned with state academic standardsnew text begin , and
science assessments under clause (2)new text end that districts and sites must use to monitor student
growth toward achieving those standards. The commissioner must not develop statewide
assessments for academic standards in social studies, health and physical education, and
the arts. The commissioner must require:

(1) annual new text begin computer-adaptive new text end reading and mathematics assessments in grades 3
through 8new text begin ,new text end and deleted text begin at the high school level for the 2005-2006 school year and laterdeleted text end new text begin high school
reading and mathematics testsnew text end ; and

(2) annual science assessments in one grade in the grades 3 through 5 span, the
grades 6 through deleted text begin 9deleted text end new text begin 8 new text end span, and a life sciences assessment in the grades deleted text begin 10deleted text end new text begin 9 new text end through 12
span deleted text begin for the 2007-2008 school year and laterdeleted text end new text begin , and the commissioner must not require
students to achieve a passing score on high school science assessments as a condition of
receiving a high school diplomanew text end .

new text begin The commissioner must ensure that for annual computer-adaptive assessments:
 new text end

new text begin (i) individual student performance data and achievement and summary reports are
available within three school days of when students take an assessment;
 new text end

new text begin (ii) growth information is available for each student from the student's first
assessment to each proximate assessment using a constant measurement scale;
 new text end

new text begin (iii) parents, teachers, and school administrators are able to use elementary and
middle school student performance data to project student achievement in high school; and
 new text end

new text begin (iv) useful diagnostic information about areas of students' academic strengths and
weaknesses is available to teachers and school administrators for purposes of improving
student instruction and indicating the specific skills and concepts that should be introduced
and developed for students at given score levels, organized by strands within subject areas,
and aligned to state academic standards.
 new text end

new text begin When contracting for computer-adaptive assessments under this section, the
weighting criteria the commissioner uses to evaluate contract proposals must give
preference to vendors prepared to provide statewide computer-adaptive assessments and
options for locally selected, locally financed, and locally implemented assessments that are
independently aligned to state standards and used to inform curriculum and instruction.
new text end

deleted text begin (b)deleted text end new text begin (d)new text end The commissioner must ensure that all statewide tests administered to
elementary and secondary students measure students' academic knowledge and skills and
not students' values, attitudes, and beliefs.

deleted text begin (c)deleted text end new text begin (e)new text end Reporting of assessment results must:

(1) provide timely, useful, and understandable information on the performance of
individual students, schools, school districts, and the state;

(2) includedeleted text begin , by no later than the 2008-2009 school year,deleted text end a value-added deleted text begin component
that is in addition to a measure for student achievement growth over timedeleted text end new text begin growth indicator
of student achievement under section 120B.35, subdivision 3, paragraph (b)new text end ; and

(3)(i) for students enrolled in grade 8 before the 2005-2006 school year, determine
whether students have met the state's basic skills requirements; and

(ii) for students enrolled in grade 8 in the 2005-2006 school year and later, determine
whether students have met the state's academic standards.

deleted text begin (d)deleted text end new text begin (f)new text end Consistent with applicable federal law and subdivision 1, paragraph (d),
clause (1), the commissioner must include appropriate, technically sound accommodations
or alternative assessments for the very few students with disabilities for whom statewide
assessments are inappropriate and for students with limited English proficiency.

deleted text begin (e)deleted text end new text begin (g)new text end A school, school district, and charter school must administer statewide
assessments under this section, as the assessments become available, to evaluate student
deleted text begin progress in achieving thedeleted text end new text begin proficiency in the context of the state's grade levelnew text end academic
standards. If a state assessment is not available, a school, school district, and charter
school must determine locally if a student has met the required academic standards. A
school, school district, or charter school may use a student's performance on a statewide
assessment as one of multiple criteria to determine grade promotion or retention. A
school, school district, or charter school may use a high school student's performance on a
statewide assessment as a percentage of the student's final grade in a course, or place a
student's assessment score on the student's transcript.

new text begin (h) For each procurement cycle for computer-adaptive assessments, the
commissioner must report to the K-12 education policy and finance committees of the
legislature on the costs of implementing computer-adaptive assessments and demonstrate
that these assessments both represent the greatest value to the state and local school
districts and minimize the need for redundant assessments.
 new text end

Subd. 2.

Department of Education assistance.

The Department of Education
shall contract for professional and technical services according to competitive bidding
procedures under chapter 16C for purposes of this section.

Subd. 3.

Reporting.

The commissioner shall report test data publicly and to
stakeholders, including the performance achievement levels developed from students'
unweighted test scores in each tested subject and a listing of demographic factors that
strongly correlate with student performance. The commissioner shall also report data that
compares performance results among school sites, school districts, Minnesota and other
states, and Minnesota and other nations. The commissioner shall disseminate to schools
and school districts a more comprehensive report containing testing information that
meets local needs for evaluating instruction and curriculum.

Subd. 4.

Access to tests.

The commissioner must adopt and publish a policy
to provide public and parental access for review of basic skills tests, Minnesota
Comprehensive Assessments, or any other such statewide test and assessment. Upon
receiving a written request, the commissioner must make available to parents or guardians
a copy of their student's actual responses to the test questions deleted text begin to be reviewed by the
parentdeleted text end new text begin for their reviewnew text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
Subdivision 1, paragraph (c), applies to the 2009-2010 through 2013-2014 school
years only. Notwithstanding any other law to the contrary, requirements related to the
mathematics graduation-required assessment for diploma under this section are repealed
June 30, 2014, and the commissioner of education must not implement any alternative to
the mathematics graduation-required assessment for diploma without specific legislative
authority. Requirements for using computer-adaptive mathematics assessments for grades
3 through 8 apply in the 2010-2011 school year and later and requirements for using
computer-adaptive reading assessments for grades 3 through 8 apply in the 2012-2013
school year and later.
new text end

Sec. 11.

Minnesota Statutes 2008, section 120B.31, is amended to read:


120B.31 SYSTEM ACCOUNTABILITY AND STATISTICAL
ADJUSTMENTS.

Subdivision 1.

Educational accountability and public reporting.

Consistent
with the deleted text begin processdeleted text end new text begin directionnew text end to adopt deleted text begin a results-oriented graduation ruledeleted text end new text begin statewide academic
standardsnew text end under section 120B.02, the department, in consultation with education and
other system stakeholders, must establish a coordinated and comprehensive system of
educational accountability and public reporting that promotes deleted text begin higherdeleted text end new text begin greaternew text end academic
achievementnew text begin , preparation for higher academic education, preparation for the world of
work, citizenship under sections 120B.021, subdivision 1, clause (4), and 120B.024,
paragraph (a), clause (4), and the artsnew text end .

Subd. 2.

Statewide testing.

Each school year, all school districts shall give a
uniform statewide test to students at specified grades to provide information on the status,
needs and performance of Minnesota students.

Subd. 3.

Educational accountability.

(a) The Independent Office of Educational
Accountability, as authorized by Laws 1997, First Special Session chapter 4, article 5,
section 28, subdivision 2, is established, and shall be funded through the Board of Regents
of the University of Minnesota. The office shall advise the education committees of the
legislature and the commissioner of education, at least on a biennial basis, onnew text begin :
new text end

new text begin (1)new text end the degree to which the statewide educational accountability and reporting system
includes a comprehensive assessment framework that measures school accountability
for students achieving the goals described in the state's deleted text begin results-orienteddeleted text end new text begin high schoolnew text end
graduation rulenew text begin ;
new text end

new text begin (2) the completeness, integrity, and use of the information provided by the statewide
educational accountability and reporting system in the context of enabling legislators and
other stakeholders to make fully informed education policy decisions consistent with the
best and most current academic research available; and
 new text end

new text begin (3) the impact the statewide educational accountability and reporting system has on
prekindergarten through grade 12 education policy, effectiveness, resource distribution,
and structurenew text end .

new text begin (b) new text end The office shall determine and annually report to the legislature whether and
how effectively:

(1) the statewide system of educational accountability deleted text begin utilizesdeleted text end new text begin usesnew text end multiple
indicators to provide valid and reliable comparative and contextual data on students,
schools, districts, and the state, and if not, recommend ways to improve the accountability
reporting system;

(2) deleted text begin the commissioner makes statistical adjustments when reporting student data over
time, consistent with clause (4);
deleted text end

deleted text begin (3) the commissioner uses indicators of student achievement growthdeleted text end new text begin a value-added
growth indicator of student achievementnew text end over time deleted text begin and a value-added assessment model
thatdeleted text end estimates the effects of the school and school district on student achievement deleted text begin to
measuredeleted text end new text begin and measuresnew text end school performance, consistent with section deleted text begin 120B.36, subdivision
1deleted text end new text begin 120B.35, subdivision 3, paragraph (b)new text end ;

deleted text begin (4) the commissioner makesdeleted text end new text begin (3)new text end data new text begin are new text end available on students who do not pass one
or more of the state's required GRAD tests and do not receive a diploma as a consequence,
and deleted text begin categorizesdeleted text end these data new text begin are categorized new text end according to gender, race, eligibility for free
or reduced lunch, and English language proficiency; and

deleted text begin (5) the commissioner fulfillsdeleted text end new text begin (4)new text end the requirements under section 127A.095,
subdivision 2new text begin , are metnew text end .

deleted text begin (b)deleted text end new text begin (c)new text end When the office reviews the statewide educational accountability and
reporting system, it shall also consider:

(1) the objectivity and neutrality of the state's educational accountability system; and

(2) the impact of a testing program on school curriculum and student learning.

Subd. 4.

Statistical adjustmentsnew text begin ; student performance datanew text end .

In developing
policies and assessment processes to hold schools and districts accountable for high
levels of academic standards under section 120B.021, the commissioner shall aggregate
student data over time to report student performancenew text begin and growthnew text end levels measured at the
new text begin school, new text end school district, deleted text begin regional, ordeleted text end new text begin andnew text end statewide level. When collecting and reporting
the new text begin performance new text end data, the commissioner shall: (1) acknowledge the impact of significant
demographic factors such as residential instability, the number of single parent families,
parents' level of education, and parents' income level on school outcomes; and (2)
organize and report the data so that state and local policy makers can understand the
educational implications of changes in districts' demographic profiles over time. Any
report the commissioner disseminates containing summary data on student performance
must integrate student performance and the demographic factors that strongly correlate
with that performance.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 12.

Minnesota Statutes 2008, section 120B.35, is amended to read:


120B.35 STUDENT ACADEMIC ACHIEVEMENT AND deleted text begin PROGRESSdeleted text end new text begin
GROWTHnew text end .

Subdivision 1.

deleted text begin Adequate yearly progress of schools and studentsdeleted text end new text begin School and
student indicators of growth and achievementnew text end .

The commissioner must develop and
implement a system for measuring and reporting academic achievement and individual
student deleted text begin progressdeleted text end new text begin growthnew text end , consistent with the statewide educational accountability and
reporting system. The new text begin system new text end components deleted text begin of the systemdeleted text end must measurenew text begin and separately
reportnew text end the adequate yearly progress of schools and new text begin the growth of new text end individual students:
students' current achievement in schools under subdivision 2; and individual students'
educational deleted text begin progressdeleted text end new text begin growthnew text end over time under subdivision 3. The system also must include
statewide measures of student academic deleted text begin achievementdeleted text end new text begin growthnew text end that identify schools with
high levels of deleted text begin achievementdeleted text end new text begin growthnew text end , and also schools with low levels of deleted text begin achievementdeleted text end new text begin
growthnew text end that need improvement. When determining a school's effect, the data must
include both statewide measures of student achievement and, to the extent annual tests
are administered, indicators of achievement growth that take into account a student's
prior achievement. Indicators of achievement and prior achievement must be based on
highly reliable statewide or districtwide assessments. Indicators that take into account a
student's prior achievement must not be used to disregard a school's low achievement or to
exclude a school from a program to improve low achievement levels. deleted text begin The commissioner
by January 15, 2002, must submit a plan for integrating these components to the chairs of
the legislative committees having policy and budgetary responsibilities for elementary
and secondary education.
deleted text end

Subd. 2.

new text begin Federal expectations for new text end student academic achievement.

(a) Each school
year, a school district must determine if the student achievement levels at each school site
meet deleted text begin state and localdeleted text end new text begin federalnew text end expectations. If student achievement levels at a school site do
not meet deleted text begin state and localdeleted text end new text begin federalnew text end expectations and the site has not made adequate yearly
progress for two consecutive school years, beginning with the 2001-2002 school year,
the district must work with the school site to adopt a plan to raise student achievement
levels to meet deleted text begin state and localdeleted text end new text begin federalnew text end expectations. The commissioner of education shall
establish student academic achievement levelsnew text begin to comply with this paragraphnew text end .

(b) School sites identified as not meeting new text begin federal new text end expectations must develop
continuous improvement plans in order to meet deleted text begin state and localdeleted text end new text begin federalnew text end expectations for
student academic achievement. The department, at a district's request, must assist the
district and the school site in developing a plan to improve student achievement. The plan
must include parental involvement components.

(c) The commissioner must:

(1) deleted text begin provide assistance todeleted text end new text begin assistnew text end school sites and districts identified as not meeting
new text begin federal new text end expectations; and

(2) provide technical assistance to schools that integrate student deleted text begin progressdeleted text end new text begin
achievementnew text end measures deleted text begin under subdivision 3 indeleted text end new text begin intonew text end the school continuous improvement
plan.

(d) The commissioner shall establish and maintain a continuous improvement Web
site designed to make data on every school and district available to parents, teachers,
administrators, community members, and the general public.

Subd. 3.

deleted text begin Student progress assessmentdeleted text end new text begin State growth target; other state measuresnew text end .

(a) The new text begin state's new text end educational assessment system deleted text begin componentdeleted text end measuring individual students'
educational deleted text begin progress must bedeleted text end new text begin growth isnew text end baseddeleted text begin , to the extent annual tests are administered,deleted text end
on indicators of achievement growth that show an individual student's prior achievement.
Indicators of achievement and prior achievement must be based on highly reliable
statewide or districtwide assessments.

(b) The commissionernew text begin , in consultation with a stakeholder group that includes
assessment and evaluation directors and staff and researchersnew text end must deleted text begin identify effective
models for measuring individual student progress that enable a school district or school
site to perform gains-based analysis, including evaluating the effects of the teacher,
school, and school district on student achievement over time. At least one model must
be a "value-added" assessment model that reliably estimates those effects for classroom
settings where a single teacher teaches multiple subjects to the same group of students, for
team teaching arrangements, and for other teaching circumstances.deleted text end new text begin implement a model
that uses a value-added growth indicator and includes criteria for identifying schools
and school districts that demonstrate medium and high growth under section 120B.299,
subdivisions 8 and 9, and may recommend other value-added measures under section
120B.299, subdivision 3. The model may be used to advance educators' professional
development and replicate programs that succeed in meeting students' diverse learning
needs. Data on individual teachers generated under the model are personnel data under
section 13.43. The model must allow users to:
new text end

new text begin (1) report student growth consistent with this paragraph; and
 new text end

new text begin (2) for all student categories, report and compare aggregated and disaggregated state
growth data using the nine student categories identified under the federal 2001 No Child
Left Behind Act and two student gender categories of male and female, respectively,
following appropriate reporting practices to protect nonpublic student data.
 new text end

new text begin The commissioner must report separate measures of student growth and proficiency,
consistent with this paragraph.
 new text end

(c) deleted text begin If a district has an accountability plan that includes gains-based analysis or
"value-added" assessment, the commissioner shall, to the extent practicable, incorporate
those measures in determining whether the district or school site meets expectations. The
department must coordinate with the district in evaluating school sites and continuous
improvement plans, consistent with best practices.deleted text end new text begin When reporting student performance
under section 120B.36, subdivision 1, the commissioner annually, beginning July 1,
2011, must report two core measures indicating the extent to which current high school
graduates are being prepared for postsecondary academic and career opportunities:
new text end

new text begin (1) a preparation measure indicating the number and percentage of high school
graduates in the most recent school year who completed course work important to
preparing them for postsecondary academic and career opportunities, consistent with
the core academic subjects required for admission to Minnesota's public colleges and
universities as determined by the Office of Higher Education under chapter 136A; and
 new text end

new text begin (2) a rigorous coursework measure indicating the number and percentage of high
school graduates in the most recent school year who successfully completed one or more
college-level advanced placement, international baccalaureate, postsecondary enrollment
options including concurrent enrollment, other rigorous courses of study under section
120B.021, subdivision 1a, or industry certification courses or programs.
 new text end

new text begin When reporting the core measures under clauses (1) and (2), the commissioner must also
analyze and report separate categories of information using the nine student categories
identified under the federal 2001 No Child Left Behind Act and two student gender
categories of male and female, respectively following appropriate reporting practices to
protect nonpublic student data.
 new text end

new text begin (d) When reporting student performance under section 120B.36, subdivision 1, the
commissioner annually, beginning July 1, 2013, must report summary data on school
safety and students' engagement and connection at school. The summary data under this
paragraph are separate from and must not be used for any purpose related to measuring
or evaluating the performance of classroom teachers. The commissioner, in consultation
with qualified experts on student engagement and connection and classroom teachers,
must identify highly reliable variables that generate summary data under this paragraph.
The summary data may be used at school, district, and state levels only. Any data on
individuals received, collected, or created that are used to generate the summary data
under this paragraph are nonpublic data under section 13.02, subdivision 9.
 new text end

Subd. 4.

Improving schools.

Consistent with the requirements of this section,
new text begin beginning June 20, 2012, new text end the commissioner of education must deleted text begin establish a second
achievement benchmark to identify improving schools. The commissioner must
recommend todeleted text end new text begin annually report to the public andnew text end the legislature deleted text begin by February 15, 2002,
indicators in addition to the achievement benchmark for identifying improving schools,
including an indicator requiring a school to demonstrate ongoing successful use of best
teaching practicesdeleted text end new text begin the organizational and curricular practices implemented in those schools
that demonstrate medium and high growth compared to the state growth targetnew text end .

Subd. 5.

Improving graduation rates for students with emotional or behavioral
disorders.

(a) A district must develop strategies in conjunction with parents of students
with emotional or behavioral disorders and the county board responsible for implementing
sections 245.487 to 245.4889 to keep students with emotional or behavioral disorders in
school, when the district has a drop-out rate for students with an emotional or behavioral
disorder in grades 9 through 12 exceeding 25 percent.

(b) A district must develop a plan in conjunction with parents of students with
emotional or behavioral disorders and the local mental health authority to increase the
graduation rates of students with emotional or behavioral disorders. A district with a
drop-out rate for children with an emotional or behavioral disturbance in grades 9 through
12 that is in the top 25 percent of all districts shall submit a plan for review and oversight
to the commissioner.

new text begin EFFECTIVE DATE. new text end

new text begin Subdivision 3, paragraph (b), applies to students in the
2008-2009 school year and later. Subdivision 3, paragraph (c), applies to students in the
2010-2011 school year and later. Subdivision 3, paragraph (d), applies to data that are
collected in the 2010-2011 school year and later and reported annually beginning July 1,
2013, consistent with advice the commissioner receives from recognized and qualified
experts on student engagement and connection and classroom teachers. Subdivision 4
applies in the 2011-2012 school year and later.
 new text end

Sec. 13.

Minnesota Statutes 2008, section 120B.36, is amended to read:


120B.36 SCHOOL ACCOUNTABILITY; APPEALS PROCESS.

Subdivision 1.

School performance report cards.

(a) The commissioner shall deleted text begin use
objective criteria based on levels of student performance todeleted text end report deleted text begin at leastdeleted text end student academic
performancenew text begin under section 120B.35, subdivision 2, the percentages of students showing
low, medium, and high growth under section 120B.35, subdivision 3, paragraph (b)new text end ,
school safetynew text begin and student engagement and connection under section 120B.35, subdivision
3, paragraph (d), rigorous coursework under section 120B.35, subdivision 3, paragraph
(c)new text end , two separate student-to-teacher ratios that clearly indicate the definition of teacher
consistent with sections 122A.06 and 122A.15 for purposes of determining these ratios,
deleted text begin anddeleted text end staff characteristicsnew text begin excluding salariesnew text end , deleted text begin with a value-added component added no later
than the 2008-2009 school yeardeleted text end new text begin student enrollment demographics, district mobility, and
extracurricular activitiesnew text end . The reportnew text begin alsonew text end must indicate a school's adequate yearly progress
status, and must not set any designations applicable to high- and low-performing schools
due solely to adequate yearly progress status.

(b) The commissioner shall develop, annually update, and post on the department
Web site school performance report cards.

(c) The commissioner must make available deleted text begin the firstdeleted text end performance report cards by
deleted text begin November 2003, and duringdeleted text end the beginning of each school year deleted text begin thereafterdeleted text end .

(d) A school or district may appeal its adequate yearly progress status in writing to
the commissioner within 30 days of receiving the notice of its status. The commissioner's
decision to uphold or deny an appeal is final.

(e) School performance report deleted text begin cardsdeleted text end new text begin cardnew text end data are nonpublic data under section
13.02, subdivision 9, until not later than ten days after the appeal procedure described in
paragraph (d) concludes. The department shall annually post school performance report
cards to its public Web site no later than September 1.

Subd. 2.

Adequate yearly progress new text begin and other new text end data.

All data the department
receives, collects, or creates deleted text begin for purposes of determiningdeleted text end new text begin to determinenew text end adequate yearly
progress deleted text begin designationsdeleted text end new text begin statusnew text end under Public Law 107-110, section 1116, new text begin set state growth
targets, and determine student growth new text end are nonpublic data under section 13.02, subdivision
9, until not later than ten days after the appeal procedure described in subdivision 1,
paragraph (d), concludes. Districts must provide parents sufficiently detailed summary
data to permit parents to appeal under Public Law 107-110, section 1116(b)(2). The
department shall annually post new text begin federal new text end adequate yearly progress data new text begin and state student
growth data new text end to its public Web site no later than September 1.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 14.

Minnesota Statutes 2008, section 121A.15, subdivision 8, is amended to read:


Subd. 8.

Report.

The administrator or other person having general control and
supervision of the elementary or secondary school shall file a report with the commissioner
on all persons enrolled in the school. The superintendent of each district shall file a report
with the commissioner for all persons within the district receiving instruction in a home
school in compliance with sections 120A.22 and 120A.24. The parent of persons receiving
instruction in a home school shall submit the statements as required by subdivisions 1, 2,
3, and 4 to the superintendent of the district in which the person resides by October 1 of
deleted text begin each school yeardeleted text end new text begin the first year of their home schooling and the 7th grade yearnew text end . The school
report must be prepared on forms developed jointly by the commissioner of health and the
commissioner of education and be distributed to the local districts by the commissioner
of health. The school report must state the number of persons attending the school, the
number of persons who have not been immunized according to subdivision 1 or 2, and
the number of persons who received an exemption under subdivision 3, clause (c) or (d).
The school report must be filed with the commissioner of education within 60 days of the
commencement of each new school term. Upon request, a district must be given a 60-day
extension for filing the school report. The commissioner of education shall forward the
report, or a copy thereof, to the commissioner of health who shall provide summary
reports to boards of health as defined in section 145A.02, subdivision 2. The administrator
or other person having general control and supervision of the child care facility shall file a
report with the commissioner of human services on all persons enrolled in the child care
facility. The child care facility report must be prepared on forms developed jointly by
the commissioner of health and the commissioner of human services and be distributed
to child care facilities by the commissioner of health. The child care facility report
must state the number of persons enrolled in the facility, the number of persons with no
immunizations, the number of persons who received an exemption under subdivision 3,
clause (c) or (d), and the number of persons with partial or full immunization histories.
The child care facility report must be filed with the commissioner of human services by
November 1 of each year. The commissioner of human services shall forward the report,
or a copy thereof, to the commissioner of health who shall provide summary reports to
boards of health as defined in section 145A.02, subdivision 2. The report required by this
subdivision is not required of a family child care or group family child care facility, for
prekindergarten children enrolled in any elementary or secondary school provided services
according to sections 125A.05 and 125A.06, nor for child care facilities in which at least
75 percent of children in the facility participate on a onetime only or occasional basis to a
maximum of 45 hours per child, per month.

Sec. 15.

Minnesota Statutes 2008, section 122A.07, subdivision 2, is amended to read:


Subd. 2.

Eligibility; board composition.

Except for the representatives of higher
education and the public, to be eligible for appointment to the Board of Teaching a person
must be a teacher currently teaching in a Minnesota school and fully licensed for the
position held and have at least five years teaching experience in Minnesota, including the
two years immediately preceding nomination and appointment. Each nominee, other than
a public nominee, must be selected on the basis of professional experience and knowledge
of teacher education, accreditation, and licensure. The board must be composed of:

(1) six teachers who are currently teaching in a Minnesota schoolnew text begin or who were
teaching at the time of the appointmentnew text end , at least four of whom must be teaching in a
public school;

(2) one higher education representative, who must be a faculty member preparing
teachers;

(3) one school administrator; and

(4) three members of the public, two of whom must be present or former members
of school boards.

Sec. 16.

Minnesota Statutes 2008, section 122A.07, subdivision 3, is amended to read:


Subd. 3.

Vacant position.

new text begin With the exception of a teacher who retires from teaching
during the course of completing a board term, new text end the position of a member who leaves
Minnesota or whose employment status changes to a category different from that from
which appointed is deemed vacant.

Sec. 17.

Minnesota Statutes 2008, section 122A.18, subdivision 4, is amended to read:


Subd. 4.

Expiration and renewal.

(a) Each license the Department of Education
issues through its licensing section must bear the date of issue. Licenses must expire
and be renewed according to the respective rules the Board of Teaching, the Board
of School Administrators, or the commissioner of education adopts. Requirements for
renewing a license must include showing satisfactory evidence of successful teaching or
administrative experience for at least one school year during the period covered by the
license in grades or subjects for which the license is valid or completing such additional
preparation as the Board of Teaching prescribes. The Board of School Administrators
shall establish requirements for renewing the licenses of supervisory personnel except
athletic coaches. The State Board of Teaching shall establish requirements for renewing
the licenses of athletic coaches.

new text begin (b) Relicensure applicants, as a condition of relicensure, must present to their
local continuing education and relicensure committee or other local relicensure
committee evidence of work that demonstrates professional reflection and growth in best
teaching practices. The applicant must include a reflective statement of professional
accomplishment and the applicant's own assessment of professional growth showing
evidence of:
 new text end

new text begin (1) support for student learning;
 new text end

new text begin (2) use of best practices techniques and their applications to student learning;
 new text end

new text begin (3) collaborative work with colleagues that includes examples of collegiality such as
attested-to committee work, collaborative staff development programs, and professional
learning community work; or
 new text end

new text begin (4) continual professional development that may include job-embedded or other
ongoing formal professional learning during the relicensure period.
 new text end

new text begin The Board of Teaching must ensure that its teacher relicensing requirements also include
this paragraph.
 new text end

deleted text begin (b)deleted text end new text begin (c)new text end The Board of Teaching shall offer alternative continuing relicensure options
for teachers who are accepted into and complete the National Board for Professional
Teaching Standards certification process, and offer additional continuing relicensure
options for teachers who earn National Board for Professional Teaching Standards
certification. Continuing relicensure requirements for teachers who do not maintain
National Board for Professional Teaching Standards certification are those the board
prescribesnew text begin , consistent with this sectionnew text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to licensees seeking relicensure beginning July 1, 2012.
 new text end

Sec. 18.

Minnesota Statutes 2008, section 122A.40, subdivision 6, is amended to read:


Subd. 6.

deleted text begin Peer reviewdeleted text end new text begin Mentoringnew text end for probationary teachers.

A school board and
an exclusive representative of the teachers in the district must develop a probationary
teacher peer review process through joint agreement.new text begin The process may include having
trained observers serve as mentors or coaches or having teachers participate in professional
learning communities.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2009-2010 school year and
later.
 new text end

Sec. 19.

Minnesota Statutes 2008, section 122A.40, subdivision 8, is amended to read:


Subd. 8.

Peer deleted text begin reviewdeleted text end new text begin coachingnew text end for continuing contract teachers.

A school board
and an exclusive representative of the teachers in the district shall develop a peer review
process for continuing contract teachers through joint agreement.new text begin The process may
include having trained observers serve as peer coaches or having teachers participate in
professional learning communities.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2009-2010 school year and
later.
 new text end

Sec. 20.

Minnesota Statutes 2008, section 122A.41, subdivision 3, is amended to read:


Subd. 3.

deleted text begin Peer reviewdeleted text end new text begin Mentoringnew text end for probationary teachers.

A board and an
exclusive representative of the teachers in the district must develop a probationary teacher
peer review process through joint agreement.new text begin The process may include having trained
observers serve as mentors or coaches or having teachers participate in professional
learning communities.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2009-2010 school year and
later.
 new text end

Sec. 21.

Minnesota Statutes 2008, section 122A.41, subdivision 5, is amended to read:


Subd. 5.

Peer deleted text begin reviewdeleted text end new text begin coachingnew text end for continuing contract teachers.

A school
board and an exclusive representative of the teachers in the district must develop a peer
review process for nonprobationary teachers through joint agreement.new text begin The process may
include having trained observers serve as peer coaches or having teachers participate in
professional learning communities.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2009-2010 school year and
later.
 new text end

Sec. 22.

Minnesota Statutes 2008, section 122A.413, subdivision 2, is amended to read:


Subd. 2.

Plan components.

The educational improvement plan must be approved
by the school board and have at least these elements:

(1) assessment and evaluation tools to measure student performance and progress;

(2) performance goals and benchmarks for improvement;

(3) measures of student attendance and completion rates;

(4) a rigorousnew text begin research and practice-basednew text end professional development system,new text begin based
on national and state standards of effective teaching practice andnew text end consistent with section
122A.60, that is aligned with educational improvementdeleted text begin ,deleted text end new text begin andnew text end designed to achievenew text begin ongoing
and schoolwide progress and growth innew text end teaching deleted text begin quality improvement, and consistent with
clearly defined research-based standardsdeleted text end new text begin practicenew text end ;

(5) measures of student, family, and community involvement and satisfaction;

(6) a data system about students and their academic progress that provides parents
and the public with understandable information;

(7) a teacher induction and mentoring program for probationary teachers that
provides continuous learning and sustained teacher support; and

(8) substantial participation by the exclusive representative of the teachers in
developing the plan.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to plans developed in the 2009-2010 school year and later.
 new text end

Sec. 23.

Minnesota Statutes 2008, section 122A.414, subdivision 2, is amended to read:


Subd. 2.

Alternative teacher professional pay system.

(a) To participate in this
program, a school district, intermediate school district, school site, or charter school must
have an educational improvement plan under section 122A.413 and an alternative teacher
professional pay system agreement under paragraph (b). A charter school participant also
must comply with subdivision 2a.

(b) The alternative teacher professional pay system agreement must:

(1) describe how teachers can achieve career advancement and additional
compensation;

(2) describe how the school district, intermediate school district, school site, or
charter school will provide teachers with career advancement options that allow teachers
to retain primary roles in student instruction and facilitate site-focused professional
development that helps other teachers improve their skills;

(3) reform the "steps and lanes" salary schedule, prevent any teacher's compensation
paid before implementing the pay system from being reduced as a result of participating
in this system, and base at least 60 percent of any compensation increase on teacher
performance using:

(i) schoolwide student achievement gains under section 120B.35 or locally selected
standardized assessment outcomes, or both;

(ii) measures of student achievement; and

(iii) an objective evaluation programnew text begin and evidence of effective practicenew text end that deleted text begin includesdeleted text end new text begin
includenew text end :

(A) individual teacher evaluations aligned with the educational improvement plan
under section 122A.413 and the staff development plan under section 122A.60; and

(B) objective evaluations using multiple criteria conducted by a locally selected and
periodically trained evaluation team that understands teaching and learning new text begin includingnew text end new text begin
a professional framework outlined in teacher evaluation best practices, supported by
multiple criteria, and conducted in a professional and supportive environment; and
new text end

new text begin (c) reflection and growth in best teaching practices shown through support for
student learning, collaborative work with colleagues, or continual professional learning,
consistent with section 122A.18, subdivision 4, paragraph (b), clauses (1) to (3)new text end ;

(4) provide integrated ongoing site-based professional development activities to
improve instructional skills and learning that are aligned with student needs under section
122A.413, consistent with the staff development plan under section 122A.60 and led
during the school day by trained teacher leaders such as master or mentor teachersnew text begin or
peer coachesnew text end ;

(5) allow any teacher in a participating school district, intermediate school district,
school site, or charter school that implements an alternative pay system to participate in
that system without any quota or other limit; and

(6) encourage collaboration rather than competition among teachers.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to all alternative teacher professional pay system agreements entered into or
modified after that date.
 new text end

Sec. 24.

Minnesota Statutes 2008, section 122A.414, subdivision 2b, is amended to
read:


Subd. 2b.

Approval process.

(a) Consistent with the requirements of this section
and sections 122A.413 and 122A.415, the department must prepare and transmit to
interested school districts, intermediate school districts, school sites, and charter schools
a standard form for applying to participate in the alternative teacher professional pay
system. new text begin The commissioner annually must establish three dates as deadlines by which
interested applicants must submit an application to the commissioner under this section.
new text end An interested school district, intermediate school district, school site, or charter school
must submit to the commissioner a completed application executed by the district
superintendent and the exclusive bargaining representative of the teachers if the applicant
is a school district, intermediate school district, or school site, or executed by the charter
school board of directors if the applicant is a charter school. The application must include
the proposed alternative teacher professional pay system agreement under subdivision
2. The department must deleted text begin convene adeleted text end review deleted text begin committee that at least includes teachers
and administratorsdeleted text end new text begin a completed applicationnew text end within 30 days of deleted text begin receiving a completed
application todeleted text end new text begin the most recent application deadline andnew text end recommend to the commissioner
whether to approve or disapprove the application. The commissioner must approve
applications on a first-come, first-served basis. The applicant's alternative teacher
professional pay system agreement must be legally binding on the applicant and the
collective bargaining representative before the applicant receives alternative compensation
revenue. The commissioner must approve or disapprove an application based on the
requirements under subdivisions 2 and 2a.

(b) If the commissioner disapproves an application, the commissioner must give the
applicant timely notice of the specific reasons in detail for disapproving the application.
The applicant may revise and resubmit its application and related documents to the
commissioner within 30 days of receiving notice of the commissioner's disapproval and
the commissioner must approve or disapprove the revised application, consistent with this
subdivision. Applications that are revised and then approved are considered submitted on
the date the applicant initially submitted the application.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to all applications submitted after that date.
 new text end

Sec. 25.

Minnesota Statutes 2008, section 122A.60, subdivision 2, is amended to read:


Subd. 2.

Contents of the plan.

The plan must include the staff development
outcomes under subdivision 3, the means to achieve the outcomes, and procedures for
evaluating progress at each school site toward meeting education outcomesdeleted text begin .deleted text end new text begin , consistent
with relicensure requirements under section 122A.18, subdivision 2, paragraph (b). The
plan also must:
new text end

new text begin (1) support stable and productive professional communities achieved through
ongoing and schoolwide progress and growth in teaching practice;
 new text end

new text begin (2) emphasize coaching, professional learning communities, classroom action
research, and other job-embedded models;
 new text end

new text begin (3) maintain a strong subject matter focus premised on students' learning goals;
 new text end

new text begin (4) ensure specialized preparation and learning about issues related to teaching
students with special needs and limited English proficiency; and
 new text end

new text begin (5) reinforce national and state standards of effective teaching practice.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2009-2010 school year and
later.
 new text end

Sec. 26.

Minnesota Statutes 2008, section 123A.05, is amended to read:


123A.05 deleted text begin AREA LEARNING CENTERdeleted text end new text begin STATE-APPROVED ALTERNATIVE
PROGRAMnew text end ORGANIZATION.

Subdivision 1.

Governance.

new text begin (a) new text end A district may establish an area learning center
deleted text begin either by itself or in cooperation with other districtsdeleted text end ,new text begin alternative learning program, or
contract alternative in accordance with sections 124D.68, subdivision 3, paragraph (d),
and 124D.69.
new text end

new text begin (b) An area learning center is encouraged to cooperate withnew text end a service cooperative, an
intermediate school district, a local education and employment transitions partnership,
public and private secondary and postsecondary institutions, public agencies, businesses,
and foundations. Except for a district located in a city of the first class, deleted text begin adeleted text end new text begin an area
learningnew text end center new text begin must be established in cooperation with other districts and new text end must serve
the geographic area of at least two districts.new text begin An area learning center must provide
comprehensive educational services to enrolled secondary students throughout the year,
including a daytime school within a school or separate site for both high school and
middle school level students.
new text end

new text begin (c) An alternative learning program may serve the students of one or more districts,
may designate which grades are served, and may make program hours and a calendar
optional.
 new text end

new text begin (d) A contract alternative is an alternative learning program operated by a private
organization that has contracted with a school district to provide educational services for
students under section 124D.68, subdivision 2.
 new text end

Subd. 2.

Reserve revenue.

Each district that is a member of an area learning center
new text begin or alternative learning program new text end must reserve revenue in an amount equal to the sum of (1)
at least 90 percent of the district average general education revenue per pupil unit minus
an amount equal to the product of the formula allowance according to section 126C.10,
subdivision 2, times .0485, calculated without basic skills revenue and transportation
sparsity revenue, times the number of pupil units attending an area learning center new text begin or
alternative learning new text end program under this section, plus (2) the amount of basic skills revenue
generated by pupils attending the area learning centernew text begin or alternative learning programnew text end . The
amount of reserved revenue under this subdivision may only be spent on program costs
associated with the area learning centernew text begin or alternative learning programnew text end .

Subd. 3.

Access to services.

A deleted text begin centerdeleted text end new text begin state-approved alternative programnew text end shall have
access to the district's regular education programs, special education programs, technology
facilities, and staff. It may contract with individuals or postsecondary institutions. It shall
seek the involvement of community education programs, postsecondary institutions,
interagency collaboratives, culturally based organizations, mutual assistance associations,
and other community resources, businesses, and other federal, state, and local public
agencies.

Subd. 4.

Nonresident pupils.

A pupil who does not reside in the district may
attend a deleted text begin centerdeleted text end new text begin state-approved alternative programnew text end without consent of the school board of
the district of residence.

Sec. 27.

Minnesota Statutes 2008, section 123A.06, is amended to read:


123A.06 deleted text begin CENTERdeleted text end new text begin STATE-APPROVED ALTERNATIVEnew text end PROGRAMS AND
SERVICES.

Subdivision 1.

Program focus.

(a) The programs and services of a deleted text begin centerdeleted text end new text begin
state-approved alternative programnew text end must focus on academic and learning skills, applied
learning opportunities, trade and vocational skills, work-based learning opportunities,
work experience, youth service to the community, transition services, and English
language and literacy programs for children whose primary language is a language other
than English. Applied learning, work-based learning, and service learning may best be
developed in collaboration with a local education and transitions partnership, culturally
based organizations, mutual assistance associations, or other community resources.
In addition to offering programs, the deleted text begin centerdeleted text end new text begin state-approved alternative programnew text end shall
coordinate the use of other available educational services, special education services,
social services, health services, and postsecondary institutions in the community and
services area.

(b) Consistent with the requirements of sections 121A.40 to 121A.56, a school
district may provide an alternative education program for a student who is within the
compulsory attendance age under section 120A.20, and who is involved in severe or
repeated disciplinary action.

Subd. 2.

People to be served.

A deleted text begin centerdeleted text end new text begin state-approved alternative programnew text end shall
provide programs for secondary pupils and adults. A center may also provide programs
and services for elementary and secondary pupils who are not attending the deleted text begin centerdeleted text end new text begin
state-approved alternative programnew text end to assist them in being successful in school. A center
shall use research-based best practices for serving limited English proficient students and
their parents. An individual education plan team may identify a deleted text begin centerdeleted text end new text begin state-approved
alternative programnew text end as an appropriate placement to the extent a deleted text begin centerdeleted text end new text begin state-approved
alternative programnew text end can provide the student with the appropriate special education services
described in the student's plan. Pupils eligible to be served are those who qualify under
the graduation incentives program in section 124D.68, subdivision 2, those enrolled
under section 124D.02, subdivision 2, or those pupils who are eligible to receive special
education services under sections 125A.03 to 125A.24, and 125A.65.

Subd. 3.

Hours of instruction exemption.

Notwithstanding any law to the contrary,
the new text begin area learning new text end center programs must be available throughout the entire year. deleted text begin A center
may petition the state board under Minnesota Rules, part 3500.1000, for exemption from
other rules.
deleted text end

Subd. 4.

Granting a diploma.

Upon successful completion of the new text begin area learning
new text end center program, a pupil is entitled to receive a high school diploma. The pupil may elect
to receive a diploma from either the district of residence or the district in which the new text begin area
learning new text end center is located.

Sec. 28.

Minnesota Statutes 2008, section 123A.08, is amended to read:


123A.08 deleted text begin CENTERdeleted text end new text begin STATE-APPROVED ALTERNATIVE PROGRAMnew text end
FUNDING.

Subdivision 1.

Outside sources for resources and services.

A deleted text begin centerdeleted text end new text begin
state-approved alternative programnew text end may accept:

(1) resources and services from postsecondary institutions serving deleted text begin centerdeleted text end new text begin
state-approved alternative programnew text end pupils;

(2) resources from deleted text begin Job Training Partnershipdeleted text end new text begin Workforce Investmentnew text end Act programs,
including funding for jobs skills training for various groups and the percentage reserved
for education;

(3) resources from the Department of Human Services and county welfare funding;

(4) resources from a local education and employment transitions partnership; or

(5) private resources, foundation grants, gifts, corporate contributions, and other
grants.

Subd. 2.

General education aid.

Payment of general education aid for nonresident
pupils enrolled in deleted text begin the centerdeleted text end new text begin area learning centers and alternative learning programsnew text end must
be made according to section 127A.47, subdivision 7.

Subd. 3.

Special education revenue.

Payment of special education revenue for
nonresident pupils enrolled in the deleted text begin centerdeleted text end new text begin state-approved alternative programnew text end must be made
according to section deleted text begin 125A.15deleted text end new text begin 127A.47, subdivision 7new text end .

Sec. 29.

Minnesota Statutes 2008, section 123B.03, subdivision 1, is amended to read:


Subdivision 1.

Background check required.

(a) A school hiring authority shall
request a criminal history background check from the superintendent of the Bureau of
Criminal Apprehension on all individuals who are offered employment in a school and
on all individuals, except enrolled student volunteers, who are offered the opportunity to
provide athletic coaching services or other extracurricular academic coaching services
to a school, regardless of whether any compensation is paid. In order for an individual
to be eligible for employment or to provide the services, the individual must provide an
executed criminal history consent form and a money order or check payable to either the
Bureau of Criminal Apprehension or the school hiring authority, at the discretion of the
school hiring authority, in an amount equal to the actual cost to the Bureau of Criminal
Apprehension and the school district of conducting the criminal history background
check. A school hiring authority deciding to receive payment may, at its discretion, accept
payment in the form of a negotiable instrument other than a money order or check and
shall pay the superintendent of the Bureau of Criminal Apprehension directly to conduct
the background check. The superintendent of the Bureau of Criminal Apprehension shall
conduct the background check by retrieving criminal history data maintained in the
criminal justice information system computers. A school hiring authority, at its discretion,
may decide not to request a criminal history background check on an individual who holds
an initial entrance license issued by the State Board of Teaching or the commissioner of
education within the 12 months preceding an offer of employment.

(b) A school hiring authority may use the results of a criminal background check
conducted at the request of another school hiring authority if:

(1) the results of the criminal background check are on file with the other school
hiring authority or otherwise accessible;

(2) the other school hiring authority conducted a criminal background check within
the previous 12 months;

(3) the individual who is the subject of the criminal background check executes a
written consent form giving a school hiring authority access to the results of the check; and

(4) there is no reason to believe that the individual has committed an act subsequent
to the check that would disqualify the individual for employment.

(c) A school hiring authority may, at its discretion, request a criminal history
background check from the superintendent of the Bureau of Criminal Apprehension on
any individual who seeks to enter a school or its grounds for the purpose of serving as a
school volunteer or working as an independent contractor or student employee. In order
for an individual to enter a school or its grounds under this paragraph when the school
hiring authority decides to request a criminal history background check on the individual,
the individual first must provide an executed criminal history consent form and a money
order, check, or other negotiable instrument payable to the school district in an amount
equal to the actual cost to the Bureau of Criminal Apprehension and the school district
of conducting the criminal history background check. deleted text begin Notwithstanding section 299C.62,
subdivision 1, the cost of the criminal history background check under this paragraph is
the responsibility of the individualdeleted text end new text begin A school hiring authority may decide to pay the cost of
conducting a background check under this paragraph, in which case the individual who is
the subject of the background check need not pay for the background checknew text end .

(d) For all nonstate residents who are offered employment in a school, a school
hiring authority shall request a criminal history background check on such individuals
from the superintendent of the Bureau of Criminal Apprehension and from the government
agency performing the same function in the resident state or, if no government entity
performs the same function in the resident state, from the Federal Bureau of Investigation.
Such individuals must provide an executed criminal history consent form and a money
order, check, or other negotiable instrument payable to the school hiring authority in an
amount equal to the actual cost to the government agencies and the school district of
conducting the criminal history background check. Notwithstanding section 299C.62,
subdivision 1, the cost of the criminal history background check under this paragraph is
the responsibility of the individual.

(e) At the beginning of each school year or when a student enrolls, a school hiring
authority must notify parents and guardians about the school hiring authority's policy
requiring a criminal history background check on employees and other individuals who
provide services to the school, and identify those positions subject to a background check
and the extent of the hiring authority's discretion in requiring a background check. The
school hiring authority may include the notice in the student handbook, a school policy
guide, or other similar communication. Nothing in this paragraph affects a school hiring
authority's ability to request a criminal history background check on an individual under
paragraph (c).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 30.

Minnesota Statutes 2008, section 123B.03, subdivision 1a, is amended to read:


Subd. 1a.

Investigation of disciplinary actions taken against prospective
teachers.

new text begin (a) new text end At the time a school board or other hiring authority conducts the criminal
history background check required under subdivision 1 on an individual offered
employment as a teacher, the school board or other hiring authority must contact the
Board of Teaching to determine whether the board has taken disciplinary action against
the teacher based on deleted text begin a board determination thatdeleted text end sexual misconduct or attempted sexual
misconduct deleted text begin occurreddeleted text end between the teacher and a studentnew text begin or other misconduct resulting in
board disciplinary actionnew text end . If disciplinary action has been taken based on deleted text begin this type ofdeleted text end
misconduct, the school board or other hiring authority must obtain access to data that are
public under section 13.41, subdivision 5, that relate to the substance of the disciplinary
action. In addition, the school board or other hiring authority must require the individual
to provide information in the employment application regarding all current and previous
disciplinary actions in Minnesota and other states taken against the individual's teaching
license as a result of sexual misconduct or attempted sexual misconduct with a student
new text begin or other misconduct new text end and indicate to the applicant that intentionally submitting false or
incomplete information is a ground for dismissal.

new text begin (b) For purposes of this subdivision, "disciplinary action" does not include an action
based on court-ordered child support or maintenance payment arrearages under section
214.101 or delinquent state taxes under section 270C.72.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective May 1, 2009.
 new text end

Sec. 31.

new text begin [123B.045] DISTRICT-CREATED SITE-GOVERNED SCHOOLS.
 new text end

new text begin Subdivision 1. new text end

new text begin Authority. new text end

new text begin (a) A school board may approve site-governed schools
under this section by requesting site-governing school proposals. The request for
proposals must include what types of schools or education innovations the board intends
to create. A current site may submit a proposal to create a different model for the site if
60 percent or more of the teachers at the site support the proposal. A group of licensed
district professionals from one or multiple district sites may submit a proposal. The
group submitting the proposal must include parents or other community members in the
development of the proposal. A proposal may request approval for a model of a school not
included in the request for proposal of the board.
 new text end

new text begin (b) The school board and the applicable bargaining unit representing district
employees must enter into memoranda of understanding specifying how applicable
sections of current contracts will enable the provisions of subdivision 2, clauses (7) and
(8), to be implemented.
 new text end

new text begin (c) Within 60 days of receipt of the application, the school board shall determine
whether to approve, deny, or return the application to the applicants for further information
or development.
 new text end

new text begin (d) Upon approval of the proposal, an agreement between the district and the site
council shall be developed identifying the powers and duties delegated to the site and
outlining the details of the proposal including the provisions of subdivisions 2, 3, and
5. Any powers or duties not specifically delegated to the school site in the agreement
remains with the school board.
 new text end

new text begin Subd. 2. new text end

new text begin Roles and responsibilities of site-governed schools. new text end

new text begin (a) Site-governed
schools approved by the school board have the following autonomy and responsibilities at
the discretion of the site:
 new text end

new text begin (1) to create the site-governing council of the school. The council shall include
teachers, administrators, parents, students if appropriate, community members, and other
representatives of the community as determined by the site-governing council. Teachers
may comprise a majority of the site-governing council at the option of a majority of
the teachers at the site. The number of members on the site-governing council and the
composition shall be included in the proposal approved by the school board;
 new text end

new text begin (2) to determine the leadership model for the site including: selecting a principal,
operating as a teacher professional practices model with school leadership functions
performed by one or more teachers or administrators at the school or other model
determined by the site;
 new text end

new text begin (3) to determine the budget for the site and the allocation and expenditure of the
revenue based on provisions of subdivision 3;
 new text end

new text begin (4) to determine the learning model and organization of the school consistent with
the application approved by the school board;
 new text end

new text begin (5) to select and develop its curriculum and determine formative and summative
assessment practices;
 new text end

new text begin (6) to set policies for the site including student promotion, attendance, discipline,
graduation requirements which may exceed the school board standards, and other such
rules as approved by the school board consistent with the mission, goals, and learning
program of the school site;
 new text end

new text begin (7) to determine the length of the school day and year and employee work rules
covered by the terms and conditions of the employment contract;
 new text end

new text begin (8) to select teachers and other staff consistent with current law and collective
bargaining agreements and memoranda of understanding provided for in subdivision 1,
paragraph (b). At least 70 percent of the teachers must be selected by the site prior to final
approval of the agreement. Prior to requesting the district to employ staff not currently
employed by the district, the site must first select current district staff including those on
requested and unrequested leave as provided for in sections 122A.40 and 122A.41. The
school board shall be the legal employer of all staff at the site and all teachers and other
staff members of the applicable bargaining units. Teachers and other employees may be
required to sign an individual work agreement with the site-governing council committing
themselves to the mission and learning program of the school and the requirements of
the site-governing council; and
 new text end

new text begin (9) to fulfill other provisions as agreed to by the district and site-governing council.
 new text end

new text begin (b) If a self-governed school created under this section is supervised by a principal,
that principal must be licensed, consistent with section 123B.147, subdivision 2.
 new text end

new text begin Subd. 3. new text end

new text begin Revenue to self-governed school. new text end

new text begin (a) The revenue that shall be allocated
by the site includes the general education revenue generated by the students at the site from
state, local, and private sources, referendum revenue, federal revenue from the Elementary
and Secondary Education Act, Individuals with Disabilities Education Act, Carl Perkins
Act, and other federal programs as agreed to by the school board and site council.
 new text end

new text begin (b) The district may retain an administrative fee for managing the federal
programs, private revenues, and general administrative functions including school board,
superintendent, district legal counsel, finance, accountability and self-governed school
contract oversight, facilities maintenance, districtwide special education programs, and
other such services as agreed to by the site and school board. The administrative fee
shall be included in the agreement.
 new text end

new text begin (c) As part of the agreement, the district may provide specific services for the site
and may specify the amount to be paid for each service and retain the revenues for that
amount. The formula or procedures for determining the amount of revenue to be allocated
to the site each year shall be consistent with this subdivision and incorporated in the site
budget annually following a timeline and process that is included in the agreement with
the school board. The site is responsible for allocating revenue for all staff at the site and
for the other provisions of the agreement with the district board.
 new text end

new text begin (d) All unspent revenue shall be carried over to following years for the sole use
of the site.
 new text end

new text begin Subd. 4. new text end

new text begin Exemption from statutes and rules. new text end

new text begin Except as outlined in this section,
site-governed schools established under this section are exempt from and subject to the
same laws and rules as are chartered schools under section 124D.10, except that the
schools shall be subject to chapters 13, 13D, and 179A, and sections 122A.40, 122A.41,
122A.50, and 122A.51.
 new text end

new text begin Subd. 5. new text end

new text begin Performance standards. new text end

new text begin (a) The school board and the site council shall
include in the agreement performance standards and expectations that shall include at
least the following:
 new text end

new text begin (1) student achievement targets on multiple indicators including either a growth
model or value-added growth model;
 new text end

new text begin (2) the criteria and process to be followed if it is determined that the site failed
to comply with district oversight and accountability requirements as outlined in the
agreement; and
 new text end

new text begin (3) other performance provisions as agreed to.
 new text end

new text begin (b) All agreements shall be filed with the commissioner. The initial agreement shall
be for up to three years, shall be reviewed annually, and may be renewed by the district
board for additional terms of up to five years based on the performance of the school.
 new text end

new text begin Subd. 6. new text end

new text begin Board termination of self-governed school authority. new text end

new text begin (a) The district
board may terminate the agreement for one or more of the following reasons:
 new text end

new text begin (1) failure of the site to meet the provisions specified in the agreement in subdivision
5;
 new text end

new text begin (2) violations of law; or
 new text end

new text begin (3) other good cause shown.
 new text end

new text begin (b) Site-governed schools that are terminated or not renewed for reasons other than
cause may request to convert to charter school status as provided for in section 124D.10
and, if chartered by the board, shall become the owner of all materials, supplies, and
equipment purchased during the period the school was a site-governed school.
 new text end

Sec. 32.

Minnesota Statutes 2008, section 123B.143, subdivision 1, is amended to read:


Subdivision 1.

Contract; duties.

All districts maintaining a classified secondary
school must employ a superintendent who shall be an ex officio nonvoting member of the
school board. The authority for selection and employment of a superintendent must be
vested in the board in all cases. An individual employed by a board as a superintendent
shall have an initial employment contract for a period of time no longer than three years
from the date of employment. Any subsequent employment contract must not exceed a
period of three years. A board, at its discretion, may or may not renew an employment
contract. A board must not, by action or inaction, extend the duration of an existing
employment contract. Beginning 365 days prior to the expiration date of an existing
employment contract, a board may negotiate and enter into a subsequent employment
contract to take effect upon the expiration of the existing contract. A subsequent contract
must be contingent upon the employee completing the terms of an existing contract. If a
contract between a board and a superintendent is terminated prior to the date specified in
the contract, the board may not enter into another superintendent contract with that same
individual that has a term that extends beyond the date specified in the terminated contract.
A board may terminate a superintendent during the term of an employment contract for any
of the grounds specified in section 122A.40, subdivision 9 or 13. A superintendent shall
not rely upon an employment contract with a board to assert any other continuing contract
rights in the position of superintendent under section 122A.40. Notwithstanding the
provisions of sections 122A.40, subdivision 10 or 11, 123A.32, 123A.75, or any other law
to the contrary, no individual shall have a right to employment as a superintendent based
on order of employment in any district. If two or more districts enter into an agreement for
the purchase or sharing of the services of a superintendent, the contracting districts have
the absolute right to select one of the individuals employed to serve as superintendent
in one of the contracting districts and no individual has a right to employment as the
superintendent to provide all or part of the services based on order of employment in a
contracting district. The superintendent of a district shall perform the following:

(1) visit and supervise the schools in the district, report and make recommendations
about their condition when advisable or on request by the board;

(2) recommend to the board employment and dismissal of teachers;

(3) superintend school grading practices and examinations for promotions;

(4) make reports required by the commissioner;new text begin and
new text end

(5) deleted text begin by January 10, submit an annual report to the commissioner in a manner
prescribed by the commissioner, in consultation with school districts, identifying the
expenditures that the district requires to ensure an 80 percent student passage rate on
the MCA-IIs taken in the eighth grade, identifying the highest student passage rate the
district expects it will be able to attain on the MCA-IIs by grade 12, and the amount of
expenditures that the district requires to attain the targeted student passage rate; and
deleted text end

deleted text begin (6)deleted text end perform other duties prescribed by the board.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to the 2009-2010 school year and later.
 new text end

Sec. 33.

Minnesota Statutes 2008, section 123B.51, is amended by adding a
subdivision to read:


new text begin Subd. 5a. new text end

new text begin Temporary closing. new text end

new text begin A school district that proposes to temporarily close a
schoolhouse or that intends to lease the facility to another entity for use as a schoolhouse
for three or fewer years is not subject to subdivision 5 if the school board holds a public
meeting and allows public comment on the schoolhouse's future.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 34.

Minnesota Statutes 2008, section 124D.095, subdivision 2, is amended to read:


Subd. 2.

Definitions.

For purposes of this section, the following terms have the
meanings given them.

(a) "Online learning" is an interactive course or program that delivers instruction
from a teacher to a student by computer; is combined with other traditional delivery
methods that include frequent student assessment and may include actual teacher contact
time; and meets or exceeds state academic standards.

(b) "Online learning provider" is a school district, an intermediate school district, an
organization of two or more school districts operating under a joint powers agreement, or
a charter school located in Minnesota that provides online learning to students.

(c) "Student" is a Minnesota resident enrolled in a school under section 120A.22,
subdivision 4, in kindergarten through grade 12.

(d) "Online learning student" is a student enrolled in an online learning course or
program delivered by an online provider under paragraph (b).

(e) "Enrolling district" means the school district or charter school in which a student
is enrolled under section 120A.22, subdivision 4, for purposes of compulsory attendance.

(f) "Supplemental online learning" means an online course taken in place of a course
period during the regular school day at a local district school.

(g) "Full-time online provider" means an enrolling school authorized by the
department to deliver comprehensive public education at any or all of the elementary,
middle, or high school levels.

new text begin (h) "Online course syllabus" is a written document that an online learning provider
makes available to the enrolling district using a format prescribed by the commissioner to
identify the state academic standards embedded in an online course, the course content
outline, required course assessments, expectations for actual teacher contact time and
other student-to-teacher communications, and academic support available to the online
learning student.
 new text end

Sec. 35.

Minnesota Statutes 2008, section 124D.095, subdivision 3, is amended to read:


Subd. 3.

Authorization; notice; limitations on enrollment.

(a) A student may
apply for full-time enrollment in an approved online learning program under section
124D.03, 124D.08 or 124D.10deleted text begin , or for supplemental online learningdeleted text end . Notwithstanding
sections 124D.03, 124D.08, and 124D.10, procedures for enrolling in new text begin supplemental new text end online
learning shall be as provided in this subdivision. A student age 17 or younger must
have the written consent of a parent or guardian to apply. No school district or charter
school may prohibit a student from applying to enroll in online learning. In order that a
student may enroll in online learning, the student and the student's parents must submit an
application to the online learning provider and identify the reason for enrolling in online
learning. The online learning provider that accepts a student under this section must within
ten days notify the student and the enrolling district in writing if the enrolling district is
not the online learning provider. The student and family must notify the online learning
provider of their intent to enroll in online learning within ten days of acceptance, at which
time the student and parent must sign a statement of assurance that they have reviewed the
online course or program and understand the expectations of online learning enrollment.
The online learning provider must notify the enrolling district of the student's deleted text begin enrollmentdeleted text end new text begin
application to enrollnew text end in online learning in writing on a form provided by the department.

(b) Supplemental online learning notification to the enrolling district upon student
deleted text begin enrollment indeleted text end new text begin application tonew text end the online learning deleted text begin programdeleted text end new text begin providernew text end will include the
courses or program, credits to be awarded, new text begin and new text end the start date of online enrollmentdeleted text begin , and
confirmation that the courses will meet the student's graduation plandeleted text end . new text begin An online learning
provider must provide the enrolling district with an online course syllabus. Within 15 days
after the online learning provider makes the supplemental online course syllabus available
to the enrolling district, the enrolling district must notify the online provider whether or
not the student, parent or guardian, and enrolling district agree that the course meets
the enrolling district's graduation requirements. new text end A student may enroll in supplemental
online learning courses up to the midpoint of the enrolling district's term. The enrolling
district may waive this requirement for special circumstances and upon acceptance by the
online provider. new text begin An online learning course or program that meets or exceeds a graduation
standard or grade progression requirements at the enrolling district as demonstrated on
the online provider's syllabus must be considered to meet the corresponding graduation
requirements of the student in the enrolling district. If the enrolling district decides that
the course does not meet its graduation requirements, then:
new text end

new text begin (1) the district shall provide a written explanation of its decision upon request by the
student, parent or guardian, or online provider;
 new text end

new text begin (2) the district shall allow the online provider the opportunity to respond in writing
to the district's written explanation of its decision for the purpose of describing how the
course may meet the district's graduation requirement; and
 new text end

new text begin (3) the student, parent or guardian, or online provider may request that the
Department of Education review the district's decision to determine whether it is consistent
with this section.
 new text end

(c) An online learning provider must notify the commissioner that it is delivering
online learning and report the number of online learning students it is accepting and the
online learning courses and programs it is delivering.

(d) An online learning provider may limit enrollment if the provider's school board
or board of directors adopts by resolution specific standards for accepting and rejecting
students' applications.

(e) An enrolling district may reduce an online learning student's regular classroom
instructional membership in proportion to the student's membership in online learning
courses.

new text begin (f) The online provider must report or provide access to information on an individual
student's progress and accumulated credit to the student, parent or guardian, and enrolling
district in a manner specified by the commissioner unless another manner is agreed upon
by the enrolling district and the online provider and submitted to the commissioner. The
enrolling district must designate a contact person to assist in facilitating and monitoring
the student's progress and accumulated credit towards graduation.
new text end

Sec. 36.

Minnesota Statutes 2008, section 124D.095, subdivision 4, is amended to read:


Subd. 4.

Online learning parameters.

(a) An online learning student must receive
academic credit for completing the requirements of an online learning course or program.
Secondary credits granted to an online learning student must be counted toward the
graduation and credit requirements of the enrolling district. deleted text begin An online learning provider
must make available to the enrolling district the course syllabus, standard alignment,
content outline, assessment requirements, and contact information for supplemental online
courses taken by students in the enrolling district.deleted text end The enrolling district must apply the
same graduation requirements to all students, including online learning students, and
must continue to provide nonacademic services to online learning students. If a student
completes an online learning course or program that meets or exceeds a graduation
standard or grade progression requirement at the enrolling district, that standard or
requirement is met. The enrolling district must use the same criteria for accepting online
learning credits or courses as it does for accepting credits or courses for transfer students
under section 124D.03, subdivision 9. The enrolling district may reduce the course
schedule of an online learning student in proportion to the number of online learning
courses the student takes from an online learning provider that is not the enrolling district.

(b) An online learning student may:

(1) enroll in supplemental online learning courses during a single school year to a
maximum of 50 percent of the student's full schedule of courses per term. A student may
exceed the supplemental online learning registration limit if the enrolling district grants
permission for supplemental online learning enrollment above the limit, or if an agreement
is made between the enrolling district and the online learning provider for instructional
services;

(2) complete course work at a grade level that is different from the student's current
grade level; and

(3) enroll in additional courses with the online learning provider under a separate
agreement that includes terms for payment of any tuition or course fees.

(c) An online learning student has the same access to the computer hardware and
education software available in a school as all other students in the enrolling district. An
online learning provider must assist an online learning student whose family qualifies
for the education tax credit under section 290.0674 to acquire computer hardware and
educational software for online learning purposes.

(d) An enrolling district may offer online learning to its enrolled students. Such
online learning does not generate online learning funds under this section. An enrolling
district that offers online learning only to its enrolled students is not subject to the
reporting requirements or review criteria under subdivision 7new text begin , unless the enrolling district
is a full-time online providernew text end . A teacher with a Minnesota license must assemble and
deliver instruction to enrolled students receiving online learning from an enrolling district.
The delivery of instruction occurs when the student interacts with the computer or the
teacher and receives ongoing assistance and assessment of learning. The instruction may
include curriculum developed by persons other than a teacher with a Minnesota license.

(e) deleted text begin Andeleted text end new text begin Both full-time and supplemental new text end online learning deleted text begin provider that is not the
enrolling district isdeleted text end new text begin providers arenew text end subject to the reporting requirements and review criteria
under subdivision 7. A teacher with a Minnesota license must assemble and deliver
instruction to online learning students. The delivery of instruction occurs when the student
interacts with the computer or the teacher and receives ongoing assistance and assessment
of learning. The instruction may include curriculum developed by persons other than a
teacher with a Minnesota license. Unless the commissioner grants a waiver, a teacher
providing online learning instruction must not instruct more than 40 students in any one
online learning course or program.

(f) To enroll in more than 50 percent of the student's full schedule of courses per term
in online learning, the student must qualify to exceed the supplemental online learning
registration limit under paragraph (b) or apply for enrollment to an approved full-time
online learning program following appropriate procedures in subdivision 3, paragraph (a).
Full-time online learning students may enroll in classes at a local school per contract for
instructional services between the online learning provider and the school district.

Sec. 37.

Minnesota Statutes 2008, section 124D.095, subdivision 7, is amended to read:


Subd. 7.

Department of Education.

(a) The department must review and
certify online learning providers. The online learning courses and programs must be
rigorous, aligned with state academic standards, and contribute to grade progression
in a single subject. deleted text begin Online learning providers must demonstrate to the commissioner
that online learning courses have equivalent standards or instruction, curriculum, and
assessment requirements as other courses offered to enrolled students. The online
learning provider must also demonstrate expectations for actual teacher contact time
or other student-to-teacher communicationdeleted text end new text begin The online provider must provide a written
statement that: (1) all courses meet state academic standards; and (2) the online learning
curriculum, instruction, and assessment, expectations for actual teacher-contact time or
other student-to-teacher communication, and academic support meet nationally recognized
professional standards and are demonstrated as such in a syllabus provided according to
the commissioner's requirementsnew text end . Once an online learning provider is approved under
this paragraph, all of its online learning course offerings are eligible for payment under
this section unless a course is successfully challenged by an enrolling district or the
department under paragraph (b).

(b) An enrolling district may challenge the validity of a course offered by an online
learning provider. The department must review such challenges based on the certification
procedures under paragraph (a). The department may initiate its own review of the validity
of an online learning course offered by an online learning provider.

(c) The department may collect a fee not to exceed $250 for certifying online
learning providers or $50 per course for reviewing a challenge by an enrolling district.

(d) The department must develop, publish, and maintain a list of approved online
learning providers and online learning courses and programs that it has reviewed and
certified.

Sec. 38.

Minnesota Statutes 2008, section 124D.095, subdivision 10, is amended to
read:


Subd. 10.

Online Learning Advisory Council.

(a) An Online Learning Advisory
Council is established deleted text begin under section , except thatdeleted text end new text begin .new text end The term for each council
member shall be three years. The advisory council is composed of 12 members from
throughout the state who have demonstrated experience with or interest in online learning.
The members of the council shall be appointed by the commissioner. The advisory council
shall bring to the attention of the commissioner any matters related to online learning and
provide input to the department in matters related, but not restricted, to:

(1) quality assurance;

(2) teacher qualifications;

(3) program approval;

(4) special education;

(5) attendance;

(6) program design and requirements; and

(7) fair and equal access to programs.

(b) The Online Learning Advisory Council under this subdivision expires June
30, deleted text begin 2008deleted text end new text begin 2013new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 39.

Minnesota Statutes 2008, section 124D.10, is amended to read:


124D.10 CHARTER SCHOOLS.

Subdivision 1.

Purposes.

(a) The purpose of this section is to:

(1) improve pupil learningnew text begin and achievementnew text end ;

(2) increase learning opportunities for pupils;

(3) encourage the use of different and innovative teaching methods;

(4) deleted text begin require the measurement ofdeleted text end new text begin measure new text end learning outcomes deleted text begin and createdeleted text end new text begin through the
creation and use ofnew text end different and innovative forms of measuring outcomes;

(5) establish new forms of accountability for schools; or

(6) create new professional opportunities for teachers, including the opportunity to
be responsible for the learning program at the school site.

(b) This section does not provide a means to keep open a school that otherwise
would be closed. Applicants in these circumstances bear the burden of proving that
conversion to a charter school fulfills a purpose specified in this subdivision, independent
of the school's closing.

Subd. 2.

Applicability.

This section applies only to charter schools formed and
operated under this section.

deleted text begin Subd. 2a. deleted text end

deleted text begin Charter School Advisory Council. deleted text end

deleted text begin (a) A Charter School Advisory
Council is established under section 15.059 except that the term for each council member
shall be three years. The advisory council is composed of seven members from throughout
the state who have demonstrated experience with or interest in charter schools. The
members of the council shall be appointed by the commissioner. The advisory council
shall bring to the attention of the commissioner any matters related to charter schools
that the council deems necessary and shall:deleted text end

deleted text begin (1) encourage school boards to make full use of charter school opportunities;
 deleted text end

deleted text begin (2) encourage the creation of innovative schools;
 deleted text end

deleted text begin (3) provide leadership and support for charter school sponsors to increase the
innovation in and the effectiveness, accountability, and fiscal soundness of charter schools;
 deleted text end

deleted text begin (4) serve an ombudsman function in facilitating the operations of new and existing
charter schools;
 deleted text end

deleted text begin (5) promote timely financial management training for newly elected members of
a charter school board of directors and ongoing training for other members of a charter
school board of directors; and
 deleted text end

deleted text begin (6) facilitate compliance with auditing and other reporting requirements. The
advisory council shall refer all its proposals to the commissioner who shall provide time
for reports from the council.
 deleted text end

deleted text begin (b) The Charter School Advisory Council under this subdivision expires June 30,
2007.
 deleted text end

Subd. 3.

deleted text begin Sponsordeleted text end new text begin Authorizernew text end .

(a)new text begin For purposes of this section, the terms defined in
this subdivision have the meanings given them.
new text end

new text begin "Application" to receive approval as an authorizer means the proposal an eligible
authorizer submits to the commissioner under paragraph (c) before that authorizer is able
to submit any affidavit to charter to a school.
 new text end

new text begin "Application" under subdivision 4 means the charter school business plan a
school developer submits to an authorizer for approval to establish a charter school that
documents the school developer's mission statement, school purposes, program design,
financial plan, governance and management structure, and background and experience,
plus any other information the authorizer requests. The application also shall include a
"statement of assurances" of legal compliance prescribed by the commissioner.
 new text end

new text begin "Affidavit" means a written statement the authorizer submits to the commissioner
for approval to establish a charter school under subdivision 4 attesting to its review and
approval process before chartering a school.
 new text end

new text begin (b) The following organizations may authorize one or more charter schools:
 new text end

new text begin (1)new text end a school board; intermediate school district school board; education district
organized under sections 123A.15 to 123A.19;

new text begin (2) anew text end charitable organization under section 501(c)(3) of the Internal Revenue Code
of 1986new text begin , excluding a nonpublic sectarian or religious institution, any person other than a
natural person that directly or indirectly, through one or more intermediaries, controls,
is controlled by, or is under common control with the nonpublic sectarian or religious
institution, and any other charitable organization under this clause that in the federal IRS
Form 1023, Part IV, describes activities indicating a religious purpose,new text end thatnew text begin :
new text end

new text begin (i)new text end is a member of the Minnesota Council of Nonprofits or the Minnesota Council on
Foundationsdeleted text begin ,deleted text end new text begin ;
new text end

new text begin (ii) isnew text end registered with the attorney general's officedeleted text begin , anddeleted text end new text begin ;
new text end

new text begin (iii)new text end reports an end-of-year fund balance of at least $2,000,000new text begin ; and
new text end

new text begin (iv) is incorporated in the state of Minnesotanew text end ;

new text begin (3) anew text end Minnesota private collegenew text begin , notwithstanding clause (2),new text end that grants two- or
four-year degrees and is registered with the Minnesota Office of Higher Education under
chapter 136A; community college, state university, or technical collegedeleted text begin ,deleted text end governed by the
Board of Trustees of the Minnesota State Colleges and Universities; or the University of
Minnesota deleted text begin may sponsor one or more charter schools.deleted text end new text begin ; or
new text end

deleted text begin (b)deleted text end new text begin (4)new text end a nonprofit corporation subject to chapter 317A, described in section
317A.905, and exempt from federal income tax under section 501(c)(6) of the Internal
Revenue Code of 1986, may deleted text begin sponsordeleted text end new text begin authorizenew text end one or more charter schools if the charter
school has operated for at least three years under a different deleted text begin sponsordeleted text end new text begin authorizernew text end and if the
nonprofit corporation has existed for at least 25 years.

new text begin (c) An eligible authorizer under this subdivision must apply to the commissioner for
approval as an authorizer before submitting any affidavit to the commissioner to charter
a school. The application for approval as a charter school authorizer must demonstrate
the applicant's ability to implement the procedures and satisfy the criteria for chartering a
school under this section. The commissioner must approve or disapprove an application
within 60 business days of the application deadline. If the commissioner disapproves
the application, the commissioner must notify the applicant of the deficiencies and the
applicant then has 20 business days to address the deficiencies to the commissioner's
satisfaction. Failing to address the deficiencies to the commissioner's satisfaction makes
an applicant ineligible to be an authorizer. The commissioner, in establishing criteria for
approval, must consider the applicant's:
 new text end

new text begin (1) capacity and infrastructure;
 new text end

new text begin (2) application criteria and process;
 new text end

new text begin (3) contracting process;
 new text end

new text begin (4) ongoing oversight and evaluation processes; and
new text end

new text begin (5) renewal criteria and processes.
 new text end

new text begin A disapproved applicant under this paragraph may resubmit an application during a
future application period.
 new text end

new text begin (d) The authorizer must participate in ongoing department-approved training.
 new text end

new text begin (e) An authorizer that chartered a school before August 1, 2009, must apply by
June 30, 2012, to the commissioner for approval under paragraph (c) to continue as an
authorizer under this section. For purposes of this paragraph, an authorizer that fails to
submit a timely application is ineligible to charter a school.
 new text end

new text begin (f) The commissioner shall review an authorizer's performance at least once every
five years in a manner and form determined by the commissioner, and may review an
authorizer's performance more frequently at the commissioner's own initiative or at the
request of a charter school developer, operator, board member, or other interested party.
The commissioner, after completing the review, shall transmit a report with findings to the
authorizer. If, consistent with this section, the commissioner finds that an authorizer has
not performed satisfactorily, the commissioner may subject the authorizer to corrective
action, which may include terminating the contract with the board of a school it chartered.
The commissioner must notify the authorizer in writing of any findings that may subject
the authorizer to corrective action and the authorizer then has 15 business days to request
an informal hearing before the commissioner takes corrective action.
 new text end

new text begin (g) The commissioner may take corrective action against an authorizer, including
terminating an authorizer's eligibility to charter a school for:
 new text end

new text begin (1) failing to satisfy the criteria under which the commissioner approved the
authorizer;
 new text end

new text begin (2) failing to perform satisfactorily as an approved authorizer; or
 new text end

new text begin (3) violating a term of the chartering contract between the authorizer and charter
school board.
 new text end

Subd. 4.

Formation of school.

(a) deleted text begin A sponsordeleted text end new text begin An authorizer, after receiving an
application from a school developer,new text end may deleted text begin authorizedeleted text end new text begin charter a licensed teacher under
section 122A.18, subdivision 1, or a group of individuals that includesnew text end one or more
licensed teachers under section 122A.18, subdivision 1, to operate a deleted text begin charterdeleted text end school subject
to new text begin the commissioner'snew text end approval deleted text begin by the commissionerdeleted text end new text begin of the authorizer's affidavit under
paragraph (b)new text end . deleted text begin A board must vote on charter school application for sponsorship no later
than 90 days after receiving the application.deleted text end The school must be organized and operated
as a cooperative under chapter 308A or nonprofit corporation under chapter 317A and
the provisions under the applicable chapter shall apply to the school except as provided
in this section.

Notwithstanding sections 465.717 and 465.719, a school districtnew text begin , subject to this
section and section 124D.11,new text end may create a corporation for the purpose of deleted text begin creatingdeleted text end new text begin
establishingnew text end a charter school.

(b) Before the operators may deleted text begin formdeleted text end new text begin establishnew text end and operate a school, the deleted text begin sponsordeleted text end new text begin
authorizernew text end must file an affidavit with the commissioner stating its intent to deleted text begin authorize adeleted text end
charter new text begin a new text end school. new text begin An authorizer must file a separate affidavit for each school it intends
to charter. new text end The affidavit must state the terms and conditions under which the deleted text begin sponsordeleted text end new text begin
authorizernew text end would deleted text begin authorize adeleted text end charter new text begin a new text end school and how the deleted text begin sponsordeleted text end new text begin authorizernew text end intends
to oversee the fiscal and student performance of the charter school and to comply with
the terms of the written contract between the deleted text begin sponsordeleted text end new text begin authorizernew text end and the charter school
board of directors under subdivision 6. The commissioner must approve or disapprove
the deleted text begin sponsor's proposed authorizationdeleted text end new text begin authorizer's affidavit new text end within deleted text begin 90deleted text end new text begin 60 business new text end days of
receipt of the affidavit. new text begin If the commissioner disapproves the affidavit, the commissioner
shall notify the authorizer of the deficiencies in the affidavit and the authorizer then has 20
business days to address the deficiencies. If the authorizer does not address deficiencies to
the commissioner's satisfaction, the commissioner's disapproval is final. new text end Failure to obtain
commissioner approval precludes deleted text begin a sponsordeleted text end new text begin an authorizer new text end from deleted text begin authorizingdeleted text end new text begin charteringnew text end the
deleted text begin charterdeleted text end school that deleted text begin wasdeleted text end new text begin isnew text end the subject of deleted text begin thedeleted text end new text begin thisnew text end affidavit.

(c) new text begin The authorizer may prevent an approved charter school from opening for
operation if, among other grounds, the charter school violates this section or does not meet
the ready-to-open standards that are part of the authorizer's oversight and evaluation
process or are stipulated in the charter school contract.
new text end

new text begin (d) new text end The operators authorized to organize and operate a school, before entering into
a contract or other agreement for professional or other services, goods, or facilities,
must incorporate as a cooperative under chapter 308A or as a nonprofit corporation
under chapter 317A and must establish a board of directors composed of at least five
membersnew text begin who are not related partiesnew text end until a timely election for members of the new text begin ongoing
new text end charter school board of directors is held according to the school's articles and bylawsnew text begin
under paragraph (f)new text end . A charter school board of directors must be composed of at least
five membersnew text begin who are not related partiesnew text end . deleted text begin Anydeleted text end Staff members deleted text begin who aredeleted text end employed at the
school, including teachers providing instruction under a contract with a cooperative, and
all parentsnew text begin or legal guardiansnew text end of children enrolled in the school deleted text begin may participate in the
election fordeleted text end new text begin are the voters eligible to elect thenew text end members of the school's board of directors.
deleted text begin Licensed teachers employed at the school, including teachers providing instruction under
a contract with a cooperative, must be a majority of the members of the board of directors
before the school completes its third year of operation, unless the commissioner waives
the requirement for a majority of licensed teachers on the board.deleted text end new text begin A charter school must
notify eligible voters of the school board election dates at least 30 days before the election.new text end
Board of director meetings must comply with chapter 13D.

deleted text begin (d) deleted text end new text begin (e) Upon the request of an individual, the charter school must make available
in a timely fashion the minutes of meetings of the board of directors, and of members
and committees having any board-delegated authority; financial statements showing all
operations and transactions affecting income, surplus, and deficit during the school's last
annual accounting period; and a balance sheet summarizing assets and liabilities on the
closing date of the accounting period. A charter school also must post on its official Web
site information identifying its authorizer and indicate how to contact that authorizer and
include that same information about its authorizer in other school materials that it makes
available to the public.
 new text end

new text begin (f) Every charter school board member shall attend department-approved training
on board governance, the board's role and responsibilities, employment policies and
practices, and financial management. A board member who does not complete the
required training within 12 months of being seated on the board is ineligible to continue to
serve as a board member.
 new text end

new text begin (g) The ongoing board must be elected before the school completes its third year of
operation. The board of directors shall be (i) a teacher majority board made up of licensed
teachers employed at the school or (ii) a board having at least 20 percent of its members
as licensed teachers employed at the school and must include charter school parents or
guardians and interested community members. Licensed teachers employed by the school,
or those providing instruction under a contract with a cooperative, may be members of the
board of directors. The chief financial officer and chief administrator are nonvoting board
members. Board bylaws shall outline the internal process and procedures for changing
the board's governance model. A board may change between the governance models
established in this paragraph only with approval from the authorizer and a voting majority
of the board of directors and the licensed teachers employed at the school, including
teachers providing instruction under a contract with a cooperative.
 new text end

new text begin (h)new text end The granting or renewal of a charter by deleted text begin a sponsoring entitydeleted text end new text begin an authorizernew text end must
not be conditioned upon the bargaining unit status of the employees of the school.

deleted text begin (e) A sponsor deleted text end new text begin (i) The granting or renewal of a charter school by an authorizer must
not be contingent on the charter school being required to contract, lease, or purchase
services from the authorizer. Any potential contract, lease, or purchase of service from
an authorizer must be disclosed to the commissioner, accepted through an open bidding
process, and be a separate contract from the charter contract. The school must document
the open bidding process. An authorizer must not enter into a contract to provide
management and financial services for a school that it authorizes, unless the school
documents that it received at least two competitive bids.
 new text end

new text begin (j) The charter school shall not offer any services or goods of value to students,
parents, or guardians as an inducement, term, or condition of enrolling a student in a
charter school.
 new text end

new text begin (k) An authorizernew text end may deleted text begin authorizedeleted text end new text begin permitnew text end the deleted text begin operatorsdeleted text end new text begin board of directorsnew text end of a charter
school to expand the operation of the charter school to additional sites or to add additional
grades at the school beyond those described in the deleted text begin sponsor's applicationdeleted text end new text begin authorizer's
original affidavitnew text end as approved by the commissioner only after submitting a supplemental
deleted text begin applicationdeleted text end new text begin affidavit for approvalnew text end to the commissioner in a form and manner prescribed by
the commissioner. The supplemental deleted text begin applicationdeleted text end new text begin affidavitnew text end must deleted text begin provide evidencedeleted text end new text begin shownew text end
that:

(1) the expansion deleted text begin ofdeleted text end new text begin proposed bynew text end the charter school is supported by need and
projected enrollment;

new text begin (2) the charter school expansion is warranted, at a minimum, by longitudinal data
demonstrating students' improved academic performance and growth on statewide
assessments under chapter 120B;
 new text end

deleted text begin (2)deleted text end new text begin (3)new text end the charter school is fiscally soundnew text begin and has the financial capacity to implement
the proposed expansionnew text end ;new text begin and
new text end

deleted text begin (3)deleted text end new text begin (4)new text end the deleted text begin sponsor supports thedeleted text end new text begin authorizer finds that the charter school has the
management capacity to carry out itsnew text end expansiondeleted text begin ; anddeleted text end new text begin .
new text end

deleted text begin (4) the building of the additional site meets all health and safety requirements to
be eligible for lease aid.
 deleted text end

deleted text begin (f) The commissioner annually must provide timely financial management training
to newly elected members of a charter school board of directors and ongoing training to
other members of a charter school board of directors. Training must address ways to:
 deleted text end

deleted text begin (1) proactively assess opportunities for a charter school to maximize all available
revenue sources;
 deleted text end

deleted text begin (2) establish and maintain complete, auditable records for the charter school;
 deleted text end

deleted text begin (3) establish proper filing techniques;
 deleted text end

deleted text begin (4) document formal actions of the charter school, including meetings of the charter
school board of directors;
 deleted text end

deleted text begin (5) properly manage and retain charter school and student records;
 deleted text end

deleted text begin (6) comply with state and federal payroll record-keeping requirements; and
 deleted text end

deleted text begin (7) address other similar factors that facilitate establishing and maintaining complete
records on the charter school's operations.
 deleted text end

new text begin (l) The commissioner shall have 30 business days to review and comment on the
supplemental affidavit. The commissioner shall notify the authorizer of any deficiencies
in the supplemental affidavit and the authorizer then has 30 business days to address,
to the commissioner's satisfaction, any deficiencies in the supplemental affidavit. The
school may not expand grades or add sites until the commissioner has reviewed and
commented on the supplemental affidavit. The commissioner's approval or disapproval of
a supplemental affidavit is final.
 new text end

Subd. 4a.

Conflict of interest.

(a) deleted text begin A member of a charter school board of directorsdeleted text end new text begin
An individualnew text end is prohibited from serving as a member of the new text begin charter school new text end board of
directors deleted text begin or asdeleted text end new text begin if the individual, an immediate family member, or the individual's partner isnew text end
an new text begin owner, new text end employee or agent of or a contractor with a for-profit new text begin or nonprofit new text end entity with
whom the charter school contracts, directly or indirectly, for professional services, goods,
or facilities. A violation of this prohibition renders a contract voidable at the option of
the commissionernew text begin or the charter school board of directorsnew text end . A member of a charter school
board of directors who violates this prohibition deleted text begin shall bedeleted text end new text begin isnew text end individually liable to the charter
school for any damage caused by the violation.

new text begin (b) No member of the board of directors, employee, officer, or agent of a charter
school shall participate in selecting, awarding, or administering a contract if a conflict
of interest exists. A conflict exists when:
 new text end

new text begin (1) the board member, employee, officer, or agent;
 new text end

new text begin (2) the immediate family of the board member, employee, officer, or agent;
 new text end

new text begin (3) the partner of the board member, employee, officer, or agent; or
 new text end

new text begin (4) an organization that employs, or is about to employ any individual in clauses
(1) to (3),
 new text end

new text begin has a financial or other interest in the entity with which the charter school is contracting.
A violation of this prohibition renders the contract void.
 new text end

new text begin (c) Any employee, agent, or board member of the authorizer who participates
in the initial review, approval, ongoing oversight, evaluation, or the charter renewal or
nonrenewal process or decision is ineligible to serve on the board of directors of a school
chartered by that authorizer.
 new text end

deleted text begin (b)deleted text end new text begin (d)new text end An individual may serve as a member of the board of directors if no conflict
of interest under paragraph (a) exists.

deleted text begin (c) A member of a charter school board of directors that serves as a member of the
board of directors or as an employee or agent of or a contractor with a nonprofit entity
with whom the charter school contracts, directly or indirectly, for professional services,
goods, or facilities, must disclose all potential conflicts to the commissioner.
 deleted text end

deleted text begin (d)deleted text end new text begin (e)new text end The conflict of interest provisions under this subdivision do not apply to
compensation paid to a teacher employed by the charter school who also serves as a
member of the board of directors.

deleted text begin (e)deleted text end new text begin (f)new text end The conflict of interest provisions under this subdivision do not apply to a
teacher who provides services to a charter school through a cooperative formed under
chapter 308A when the teacher also serves on the charter school board of directors.

Subd. 5.

Conversion of existing schools.

A boardnew text begin of an independent or special
school districtnew text end may convert one or more of its existing schools to charter schools under
this section if 60 percent of the full-time teachers at the school sign a petition seeking
conversion. The conversion must occur at the beginning of an academic year.

Subd. 6.

new text begin Charter new text end contract.

The deleted text begin sponsor'sdeleted text end authorization for a charter school must
be in the form of a written contract signed by the deleted text begin sponsordeleted text end new text begin authorizernew text end and the board of
directors of the charter school. The contract must be completed within deleted text begin 90deleted text end new text begin 45 businessnew text end
days of the commissioner's approval of the deleted text begin sponsor's proposed authorization.deleted text end new text begin authorizer's
affidavit. The authorizer shall submit to the commissioner a copy of the signed charter
contract within ten business days of its execution. new text end The contract for a charter school must
be in writing and contain at least the following:

(1) a deleted text begin description of a program that carries out one or more of the purposesdeleted text end
new text begin declaration of the purposes new text end in subdivision 1new text begin that the school intends to carry out and how
the school will report its implementation of those purposesnew text end ;

(2) new text begin a description of the school program and the new text end specific new text begin academic and nonacademic
new text end outcomes new text begin that new text end pupils deleted text begin are todeleted text end new text begin mustnew text end achieve deleted text begin under subdivision 10deleted text end ;

(3) new text begin a statement of new text end admission policies and procedures;

(4) new text begin a governance, new text end managementnew text begin ,new text end and administration deleted text begin ofdeleted text end new text begin plan fornew text end the school;

(5) new text begin signed agreements from charter school board members to comply with all federal
and state laws governing organizational, programmatic, and financial new text end requirements deleted text begin and
procedures for program and financial auditsdeleted text end new text begin applicable to charter schoolsnew text end ;

(6) deleted text begin how the school will comply with subdivisions 8, 13, 16, and 23deleted text end new text begin the criteria,
processes, and procedures that the authorizer will use for ongoing oversight of operational,
financial, and academic performancenew text end ;

(7) deleted text begin assumption of liability by the charter schooldeleted text end new text begin the performance evaluation that is a
prerequisite for reviewing a charter contract under subdivision 15new text end ;

(8) types and amounts of insurance new text begin liability new text end coverage to be obtained by the charter
school;

(9) the term of the contract, which may be up to three yearsnew text begin for an initial contract
plus an additional preoperational planning year, and up to five years for a renewed contract
if warranted by the school's academic, financial, and operational performancenew text end ;

(10) deleted text begin ifdeleted text end new text begin hownew text end the board of directors or the operators of the charter school new text begin will new text end provide
special instruction and services for children with a disability under sections 125A.03
to 125A.24, and 125A.65, a description of the financial parameters within which the
charter school will operate to provide the special instruction and services to children
with a disability; deleted text begin and
deleted text end

(11) the process and criteria the deleted text begin sponsordeleted text end new text begin authorizernew text end intends to use to monitor
and evaluate the fiscal and student performance of the charter school, consistent with
subdivision 15deleted text begin .deleted text end new text begin ; and
new text end

new text begin (12) the plan for an orderly closing of the school under chapter 308A or 317A, if the
closure is a termination for cause, a voluntary termination, or a nonrenewal of the contract,
and that includes establishing the responsibilities of the school board of directors and the
authorizer and notifying the commissioner, authorizer, school district in which the charter
school is located, and parents of enrolled students about the closure, the transfer of student
records to students' resident districts, and procedures for closing financial operations.
 new text end

Subd. 6a.

Audit report.

new text begin (a) new text end The charter school must submit an audit report to the
commissionernew text begin and its authorizernew text end by December 31 each year.new text begin The commissioner may
withhold the charter school's state aid if the charter school does not submit an audit by
January 31.
new text end

new text begin (b)new text end The charter school, with the assistance of the auditor conducting the audit, must
include with the report a copy of all charter school agreements for corporate management
services. If the entity that provides the professional services to the charter school is
exempt from taxation under section 501 of the Internal Revenue Code of 1986, that entity
must file with the commissioner by February 15 a copy of the annual return required under
section 6033 of the Internal Revenue Code of 1986.

new text begin (c)new text end If the commissioner receives deleted text begin as part of thedeleted text end new text begin annew text end audit report deleted text begin a management letterdeleted text end
indicating that a material weakness exists in the financial reporting systems of a charter
school, the charter school must submit a written report to the commissioner explaining
how the material weakness will be resolved.

deleted text begin Upon the request of an individual, the charter school must make available in a timely
fashion the minutes of meetings of members, the board of directors, and committees
having any of the authority of the board of directors, and statements showing the financial
result of all operations and transactions affecting income and surplus during the school's
last annual accounting period and a balance sheet containing a summary of its assets and
liabilities as of the closing date of the accounting period.
 deleted text end

Subd. 7.

Public status; exemption from statutes and rules.

A charter school is a
public school and is part of the state's system of public education. deleted text begin Except as provided in
this section, a charter school is exempt from all statutes and rules applicable to a school, a
board, or a district, although it may elect to comply with one or more provisions of statutes
or rules.deleted text end new text begin A charter school is exempt from all statutes and rules applicable to a school,
school board, or school district unless a statute or rule is made specifically applicable to a
charter school or is included in this section.
new text end

Subd. 8.

State and local requirements.

(a) A charter school shall meet all
deleted text begin applicabledeleted text end new text begin federal,new text end statenew text begin ,new text end and local health and safety requirementsnew text begin applicable to school
districtsnew text end .

(b)new text begin A school must comply with statewide education accountability requirements
governing standards and assessments in chapter 120B and must work with the Department
of Education to make available to the public valid and highly reliable comparisons
of student academic growth and achievement across schools consistent with school
performance report card information under section 120B.36.
new text end

new text begin (c)new text end A school deleted text begin sponsoreddeleted text end new text begin authorizednew text end by a school board may be located in any district,
unless the school board of the district of the proposed location disapproves by written
resolution.

deleted text begin (c)deleted text end new text begin (d)new text end A charter school must be nonsectarian in its programs, admission policies,
employment practices, and all other operations. deleted text begin A sponsordeleted text end new text begin An authorizernew text end may not
deleted text begin authorize adeleted text end charter new text begin a new text end school deleted text begin or programdeleted text end that is affiliated with a nonpublic sectarian
school or a religious institution.new text begin A charter school student must be released for religious
instruction, consistent with section 120A.22, subdivision 12, clause (3).
new text end

deleted text begin (d)deleted text end new text begin (e)new text end Charter schools must not be used as a method of providing education or
generating revenue for students who are being home-schooled.

deleted text begin (e)deleted text end new text begin (f)new text end The primary focus of a charter school must be to provide a comprehensive
program of instruction for at least one grade or age group from five through 18 years
of age. Instruction may be provided to people younger than five years and older than
18 years of age.

deleted text begin (f)deleted text end new text begin (g)new text end A charter school may not charge tuitionnew text begin to students who reside in Minnesotanew text end .

deleted text begin (g)deleted text end new text begin (h)new text end A charter school is subject to and must comply with chapter 363A and
section 121A.04.

deleted text begin (h)deleted text end new text begin (i)new text end A charter school is subject to and must comply with the Pupil Fair Dismissal
Act, sections 121A.40 to 121A.56, and the Minnesota Public School Fee Law, sections
123B.34 to 123B.39.

deleted text begin (i)deleted text end new text begin (j)new text end A charter school is subject to the same financial audits, audit procedures, and
audit requirements as a district. Audits must be conducted in compliance with generally
accepted governmental auditing standards, the Federal Single Audit Act, if applicable,
and section 6.65. A charter school is subject to and must comply with sections 15.054;
118A.01; 118A.02; 118A.03; 118A.04; 118A.05; 118A.06; deleted text begin 123B.52, subdivision 5;deleted text end
471.38; 471.391; 471.392;new text begin andnew text end 471.425deleted text begin ; 471.87; 471.88, subdivisions 1, 2, 3, 4, 5, 6,
12, 13, and 15; 471.881; and 471.89deleted text end . The audit must comply with the requirements of
sections 123B.75 to 123B.83, except to the extent deviations are necessary because of the
program at the school. Deviations must be approved by the commissionernew text begin and authorizernew text end .
The Department of Education, state auditor, deleted text begin ordeleted text end legislative auditornew text begin , or authorizernew text end may
conduct financial, program, or compliance audits. A charter school determined to be in
statutory operating debt under sections 123B.81 to 123B.83 must submit a plan under
section 123B.81, subdivision 4.

deleted text begin (j)deleted text end new text begin (k)new text end A charter school is a district for the purposes of tort liability under chapter 466.

deleted text begin (k)deleted text end new text begin (l)new text end A charter school must comply withnew text begin chapters 13 and 13D; andnew text end sections deleted text begin 13.32;deleted text end
120A.22, subdivision 7; 121A.75; and 260B.171, subdivisions 3 and 5.

deleted text begin (l)deleted text end new text begin (m)new text end A charter school is subject to the Pledge of Allegiance requirement under
section 121A.11, subdivision 3.

new text begin (n) A charter school is subject to chapter 181.
 new text end

new text begin (o) A charter school must comply with section 120A.22, subdivision 7, governing
the transfer of students' educational records and sections 138.163 and 138.17 governing
the management of local records.
 new text end

new text begin Subd. 8a. new text end

new text begin Aid reduction. new text end

new text begin The commissioner may reduce a charter school's state aid
under section 127A.42 or 127A.43 if the charter school board fails to correct a violation
under this section.
 new text end

new text begin Subd. 8b. new text end

new text begin Aid reduction for violations. new text end

new text begin The commissioner may reduce a charter
school's state aid by an amount not to exceed 60 percent of the charter school's basic
revenue for the period of time that a violation of law occurs.
 new text end

Subd. 9.

Admission requirements.

A charter school may limit admission to:

(1) pupils within an age group or grade level;new text begin or
new text end

(2) people who are eligible to participate in the graduation incentives program
under section 124D.68deleted text begin ; ordeleted text end new text begin .
new text end

deleted text begin (3) residents of a specific geographic area where the percentage of the population
of non-Caucasian people of that area is greater than the percentage of the non-Caucasian
population in the congressional district in which the geographic area is located, and as
long as the school reflects the racial and ethnic diversity of the specific area.
 deleted text end

A charter school shall enroll an eligible pupil who submits a timely application,
unless the number of applications exceeds the capacity of a program, class, grade level,
or building. In this case, pupils must be accepted by lot. deleted text begin If a charter school is the only
school located in a town serving pupils within a particular grade level, then pupils that
are residents of the town must be given preference for enrollment before accepting pupils
by lot. If a pupil lives within two miles of a charter school and the next closest public
school is more than five miles away, the charter school must give those pupils preference
for enrollment before accepting other pupils by lot.deleted text end new text begin The charter school must develop and
publish a lottery policy and process that it must use when accepting pupils by lot.
new text end

A charter school shall give preference for enrollment to a sibling of an enrolled pupil
and to a foster child of that pupil's parentsnew text begin and may give preference for enrolling children
of the school's employeesnew text end before accepting other pupils by lot.

A charter school may not limit admission to pupils on the basis of intellectual ability,
measures of achievement or aptitude, or athletic abilitynew text begin and may not establish any criteria
or requirements for admission that are inconsistent with this subdivisionnew text end .

Subd. 10.

Pupil performance.

A charter school must design its programs to at
least meet the outcomes adopted by the commissioner for public school students. In the
absence of the commissioner's requirements, the school must meet the outcomes contained
in the contract with the deleted text begin sponsordeleted text end new text begin authorizernew text end . The achievement levels of the outcomes
contained in the contract may exceed the achievement levels of any outcomes adopted by
the commissioner for public school students.

Subd. 11.

Employment and other operating matters.

A charter school must
employ or contract with necessary teachers, as defined by section 122A.15, subdivision 1,
who hold valid licenses to perform the particular service for which they are employed in
the school. The charter school's state aid may be reduced under section deleted text begin 127A.42deleted text end new text begin 127A.43new text end
if the school employs a teacher who is not appropriately licensed or approved by the
board of teaching. The school may employ necessary employees who are not required to
hold teaching licenses to perform duties other than teaching and may contract for other
services. The school may discharge teachers and nonlicensed employees. new text begin The charter
school board is subject to section 181.932. When offering employment to a prospective
employee, a charter school must give that employee a written description of the terms and
conditions of employment and the school's personnel policies. new text end A person, without holding
a valid administrator's license, may perform administrative, supervisory, or instructional
leadership duties.

The board of directors also shall decide matters related to the operation of the school,
including budgeting, curriculum and operating procedures.

Subd. 12.

Pupils with a disability.

A charter school must comply with sections
125A.02, 125A.03 to 125A.24, and 125A.65 and rules relating to the education of pupils
with a disability as though it were a district.

Subd. 13.

Length of school year.

A charter school must provide instruction
each year for at least the number of days required by section 120A.41. It may provide
instruction throughout the year according to sections 124D.12 to 124D.127 or 124D.128.

Subd. 14.

Annual public reports.

A charter school must new text begin publish an annual new text end report deleted text begin at
least annually to its sponsor and the commissioner the information required by the sponsor
or the commissionerdeleted text end new text begin approved by the charter school board of directors. The annual report
must at least include information on school enrollment, governance and management,
staffing, finances, academic performance, operational performance, innovative practices
and implementation, and future plans. A charter school must distribute the annual
report by publication, mail, or electronic means to the commissioner, authorizer, school
employees, and parents and legal guardians of students enrolled in the charter school and
also must post the report on the charter school's official Web sitenew text end . The reports are public
data under chapter 13.

Subd. 15.

Review and comment.

(a) deleted text begin The department must review and comment on
the evaluation, by the sponsor, of the performance of a charter school before the charter
school's contract is renewed for another contract term. The sponsor must submit to
the commissioner timely information for the review and comment.deleted text end new text begin The commissioner
must review and comment on the authorizer's performance evaluation process at the
time the authorizer submits its application for approval as an authorizer and each time
the authorizer undergoes its five-year review under subdivision 3, paragraph (f). Before
renewing a charter contract, the authorizer shall provide the commissioner with a formal,
written evaluation of the school's performance.
new text end

(b) deleted text begin A sponsordeleted text end new text begin An authorizernew text end shall monitor and evaluate the fiscal and student
performance of the school, and may for this purpose annually assess a charter schooldeleted text begin : (1)deleted text end
deleted text begin in its first, second, or third year of operation up to $30 per student up to a maximum of
deleted text end deleted text begin $10,000; and (2) in its fourth or a subsequent year of operation up to deleted text end deleted text begin $10deleted text end deleted text begin per student deleted text end deleted text begin up to
a maximum of deleted text end deleted text begin $3,500deleted text end new text begin a fee according to paragraph (c)new text end .

new text begin (c) The minimum fee that each charter school pays to an authorizer is the basic
formula allowance for that year. Beginning in fiscal year 2013, the maximum fee is four
times the formula allowance for that year. Beginning in fiscal year 2013, each charter
school's fee, subject to the minimum and maximum fees, equals the product of .015, the
formula allowance for that year, and the charter school's adjusted marginal cost pupil
units for that year.
 new text end

new text begin (d) Notwithstanding paragraph (c), the following charter school fees apply, subject
to the minimum and maximum fee in paragraph (c):
 new text end

new text begin (1) for fiscal year 2010 only, each charter school's fee equals the product of .01, the
formula allowance for that year, and the charter school's adjusted marginal cost pupil units
for that year and the maximum fee is two times the basic formula allowance for that year;
 new text end

new text begin (2) for fiscal year 2011 only, each charter school's fee equals the product of .01, the
formula allowance for that year, and the charter school's adjusted marginal cost pupil
units for that year and the maximum fee is three times the basic formula allowance for
that year; and
 new text end

new text begin (3) for fiscal year 2012 only, each charter school's fee equals the product of .013, the
formula allowance for that year, and the charter school's adjusted marginal cost pupil units
for that year and the maximum fee is four times the basic formula allowance for that year.
 new text end

new text begin (e) For the preoperational planning period, the authorizer may assess a charter school
the formula allowance for one pupil unit.
 new text end

new text begin (f) Each year by September 30, an authorizer shall submit to the commissioner a
statement of expenditures related to authorizing activities during the previous school year
ending on June 30. The authorizer must transmit a copy of the statement to all schools
chartered by the authorizer.
 new text end

Subd. 16.

Transportation.

(a) A charter school after its first fiscal year of operation
by March 1 of each fiscal year and a charter school by July 1 of its first fiscal year of
operation must notify the district in which the school is located and the Department of
Education if it will provide its own transportation or use the transportation services of the
district in which it is located for the fiscal year.

(b) If a charter school elects to provide transportation for pupils, the transportation
must be provided by the charter school within the district in which the charter school is
located. The state must pay transportation aid to the charter school according to section
124D.11, subdivision 2.

For pupils who reside outside the district in which the charter school is located, the
charter school is not required to provide or pay for transportation between the pupil's
residence and the border of the district in which the charter school is located. A parent
may be reimbursed by the charter school for costs of transportation from the pupil's
residence to the border of the district in which the charter school is located if the pupil is
from a family whose income is at or below the poverty level, as determined by the federal
government. The reimbursement may not exceed the pupil's actual cost of transportation
or 15 cents per mile traveled, whichever is less. Reimbursement may not be paid for
more than 250 miles per week.

At the time a pupil enrolls in a charter school, the charter school must provide the
parent or guardian with information regarding the transportation.

(c) If a charter school does not elect to provide transportation, transportation for
pupils enrolled at the school must be provided by the district in which the school is
located, according to sections 123B.88, subdivision 6, and 124D.03, subdivision 8, for a
pupil residing in the same district in which the charter school is located. Transportation
may be provided by the district in which the school is located, according to sections
123B.88, subdivision 6, and 124D.03, subdivision 8, for a pupil residing in a different
district. If the district provides the transportation, the scheduling of routes, manner and
method of transportation, control and discipline of the pupils, and any other matter relating
to the transportation of pupils under this paragraph shall be within the sole discretion,
control, and management of the district.

Subd. 17.

Leased space.

new text begin (a) new text end A charter school may lease space from deleted text begin adeleted text end new text begin an
independent or special schoolnew text end board eligible to be deleted text begin a sponsor ordeleted text end new text begin an authorizer,new text end other public
deleted text begin ordeleted text end new text begin organization,new text end privatenew text begin ,new text end nonprofit nonsectarian organizationnew text begin , private property owner,
or a sectarian organization if the leased space is constructed as a school facility. The
department must review and approve or disapprove leases in a timely mannernew text end . deleted text begin If a charter
school is unable to lease appropriate space from an eligible board or other public or private
nonprofit nonsectarian organization, the school may lease space from another nonsectarian
organization if the Department of Education, in consultation with the Department of
Administration, approves the lease. If the school is unable to lease appropriate space from
public or private nonsectarian organizations, the school may lease space from a sectarian
organization if the leased space is constructed as a school facility and the Department of
Education, in consultation with the Department of Administration, approves the lease.deleted text end new text begin
The lease aid payments for charter schools that lease a facility from a school district or
other government entity is limited to the same level of lease aid as defined in Minnesota
Statutes 2008, section 124D.11, subdivision 4.
new text end

new text begin (b) Upon approval of the authorizer, a charter school that has operated at least five
consecutive years may form a separate affiliated nonprofit building company to provide a
school facility. The authorizer shall submit a supplemental affidavit to the commissioner
stating that the authorizer has reviewed:
 new text end

new text begin (1) the school's feasibility study on facility options;
 new text end

new text begin (2) documents showing the school's need and projected enrollment for such a
facility; and
 new text end

new text begin (3) the school's financial plan and financial status.
 new text end

new text begin The school is prohibited from organizing the nonprofit building company until the
authorizer files a supplementary affidavit with the commissioner and receives approval
from the commissioner.
 new text end

new text begin (c) A charter school that leases a facility from a building company under paragraph
(b) must include in its lease agreement a clause that recognizes the reductions in lease aid
applicable under section 124D.11, subdivision 4, when the bonds or mortgage to cover the
original purchase and renovation or construction of the facility have been retired.
 new text end

deleted text begin Subd. 18. deleted text end

deleted text begin Authority to raise initial working capital. deleted text end

deleted text begin A sponsor may authorize
a charter school before the applicant has secured its space, equipment, facilities, and
personnel if the applicant indicates the authority is necessary for it to raise working
capital. A sponsor may not authorize a school before the commissioner has approved the
authorization.
 deleted text end

Subd. 19.

Disseminate information.

new text begin (a)new text end The deleted text begin sponsordeleted text end new text begin authorizernew text end , the operators, and
the deleted text begin Department of Educationdeleted text end new text begin departmentnew text end must disseminate information to the public
on how to form and operate a charter school deleted text begin anddeleted text end new text begin . Charter schools must disseminate
information aboutnew text end how to deleted text begin utilizedeleted text end new text begin usenew text end the offerings of a charter school. deleted text begin Particulardeleted text end new text begin Targetednew text end
groups deleted text begin to be targeteddeleted text end include low-income families and communities, deleted text begin anddeleted text end students of
colornew text begin , and students who are at risk of academic failurenew text end .

new text begin (b) Authorizers, operators, and the department also may disseminate information
about the successful best practices in teaching and learning demonstrated by charter
schools.
 new text end

Subd. 20.

Leave to teach in a charter school.

If a teacher employed by a district
makes a written request for an extended leave of absence to teach at a charter school,
the district must grant the leave. The district must grant a leave not to exceed a total of
five years. Any request to extend the leave shall be granted only at the discretion of the
school board. The district may require that the request for a leave or extension of leave
be made deleted text begin up to 90 days before the teacher would otherwise have to report for dutydeleted text end new text begin before
February 1 in the school year preceding the school year in which the teacher intends
to leave, or February 1 of the calendar year in which the teacher's leave is scheduled
to terminatenew text end . Except as otherwise provided in this subdivision and except for section
122A.46, subdivision 7, the leave is governed by section 122A.46, including, but not
limited to, reinstatement, notice of intention to return, seniority, salary, and insurance.

During a leave, the teacher may continue to aggregate benefits and credits in the
Teachers' Retirement Association account deleted text begin by paying both the employer and employee
contributions based upon the annual salary of the teacher for the last full pay period before
the leave began. The retirement association may impose reasonable requirements to
efficiently administer this subdivisiondeleted text end new text begin under chapters 354 and 354A, consistent with
subdivision 22new text end .

Subd. 21.

Collective bargaining.

Employees of the board of directors of a charter
school may, if otherwise eligible, organize under chapter 179A and comply with its
provisions. The board of directors of a charter school is a public employer, for the
purposes of chapter 179A, upon formation of one or more bargaining units at the school.
Bargaining units at the school must be separate from any other units within deleted text begin the sponsoringdeleted text end new text begin
an authorizingnew text end district, except that bargaining units may remain part of the appropriate
unit within deleted text begin the sponsoringdeleted text end new text begin an authorizingnew text end district, if the employees of the school, the
board of directors of the school, the exclusive representative of the appropriate unit in the
deleted text begin sponsoringdeleted text end new text begin authorizingnew text end district, and the board of the deleted text begin sponsoringdeleted text end new text begin authorizingnew text end district agree
to include the employees in the appropriate unit of the deleted text begin sponsoringdeleted text end new text begin authorizingnew text end district.

Subd. 22.

Teacher and other employee retirement.

(a) Teachers in a charter
school must be public school teachers for the purposes of chapters 354 and 354a.

(b) Except for teachers under paragraph (a), employees in a charter school must be
public employees for the purposes of chapter 353.

Subd. 23.

Causes for nonrenewal or termination of charter school contract.

(a)
The duration of the contract with a deleted text begin sponsordeleted text end new text begin authorizer new text end must be for the term contained in
the contract according to subdivision 6. The deleted text begin sponsordeleted text end new text begin authorizer new text end may or may not renew a
contract at the end of the term for any ground listed in paragraph (b). A deleted text begin sponsordeleted text end new text begin authorizer
new text end may unilaterally terminate a contract during the term of the contract for any ground
listed in paragraph (b). At least 60 days before not renewing or terminating a contract,
the deleted text begin sponsordeleted text end new text begin authorizernew text end shall notify the board of directors of the charter school of the
proposed action in writing. The notice shall state the grounds for the proposed action in
reasonable detail and that the charter school's board of directors may request in writing an
informal hearing before the deleted text begin sponsordeleted text end new text begin authorizer new text end within deleted text begin 14deleted text end new text begin 15 businessnew text end days of receiving
notice of nonrenewal or termination of the contract. Failure by the board of directors to
make a written request for a hearing within the deleted text begin 14-daydeleted text end new text begin 15-business-daynew text end period shall be
treated as acquiescence to the proposed action. Upon receiving a timely written request
for a hearing, the deleted text begin sponsordeleted text end new text begin authorizer new text end shall give deleted text begin reasonabledeleted text end new text begin ten business days'new text end notice to
the charter school's board of directors of the hearing date. The deleted text begin sponsordeleted text end new text begin authorizer new text end shall
conduct an informal hearing before taking final action. The deleted text begin sponsordeleted text end new text begin authorizernew text end shall take
final action to renew or not renew a contract deleted text begin by the last day of classes in the school year.
If the sponsor is a local board, the school's board of directors may appeal the sponsor's
decision to the commissionerdeleted text end new text begin no later than 20 business days before the proposed date for
terminating the contract or the end date of the contractnew text end .

(b) A contract may be terminated or not renewed upon any of the following grounds:

(1) failure to meet the requirements for pupil performance contained in the contract;

(2) failure to meet generally accepted standards of fiscal management;

(3) violations of law; or

(4) other good cause shown.

If a contract is terminated or not renewed under this paragraph, the school must be
dissolved according to the applicable provisions of chapter 308A or 317Adeleted text begin , except when
the commissioner approves the decision of a different eligible sponsor to authorize the
charter schooldeleted text end .

(c) If deleted text begin at the end of a contract term, eitherdeleted text end the deleted text begin sponsor ordeleted text end new text begin authorizer and new text end the charter
school board of directors deleted text begin wantsdeleted text end new text begin mutually agreenew text end to voluntarily terminate new text begin or not renew
new text end the contract, a change in deleted text begin sponsorsdeleted text end new text begin authorizersnew text end is allowed if the commissioner approves
the deleted text begin decision ofdeleted text end new text begin transfer tonew text end a different deleted text begin eligible sponsordeleted text end new text begin approved authorizernew text end to deleted text begin authorizedeleted text end new text begin
charternew text end the deleted text begin charterdeleted text end school. deleted text begin The party intending to terminate the contract must notify the
other party and the commissioner of its intent at least 90 days before the date on which the
contract ends.deleted text end new text begin Both parties jointly must submit their intent in writing to the commissioner
to mutually terminate the contract.new text end The deleted text begin sponsordeleted text end new text begin authorizernew text end that is a party to the existing
contract deleted text begin at leastdeleted text end must inform the approved deleted text begin different eligible sponsordeleted text end new text begin new authorizernew text end about
the fiscal and new text begin operational status, and new text end student performance of the school. If no deleted text begin different
eligible sponsordeleted text end new text begin transfer of authorizernew text end is approved, the school must be dissolved according
to applicable law and the terms of the contract.

(d) The commissioner, after providing reasonable notice to the board of directors of
a charter school and the existing deleted text begin sponsordeleted text end new text begin authorizernew text end , and after providing an opportunity for
a public hearing, may terminate the existing deleted text begin sponsorial relationshipdeleted text end new text begin contract between the
authorizer and the charter school boardnew text end if the charter school has a history of:

(1)new text begin failure to meet pupil performance requirements contained in the contract;
new text end

new text begin (2)new text end financial mismanagementnew text begin or failure to meet generally accepted standards of
fiscal managementnew text end ; or

deleted text begin (2)deleted text end new text begin (3)new text end repeated new text begin or major new text end violations of the law.

new text begin (e) If the commissioner terminates a charter school contract because the authorizer
fails to comply with subdivision 3, paragraph (g), the commissioner shall provide the
charter school with information about other eligible authorizers.
 new text end

Subd. 23a.

Related party lease costs.

(a) A charter school is prohibited from
entering a lease of real property with a related party deleted text begin as defined in subdivision 26,deleted text end unless
the lessor is a nonprofit corporation under chapter 317A or a cooperative under chapter
308A, and the lease cost is reasonable under section 124D.11, subdivision 4, clause (1).

(b)new text begin For purposes of this section and section 124D.11:
new text end

new text begin (1) "related party" means an affiliate or immediate relative of the other party in
question, an affiliate of an immediate relative, or an immediate relative of an affiliate;
 new text end

new text begin (2) "affiliate" means a person that directly or indirectly, through one or more
intermediaries, controls, is controlled by, or is under common control with another person;
 new text end

new text begin (3) "immediate family" means an individual whose relationship by blood, marriage,
adoption, or partnering is no more remote than first cousin;
 new text end

new text begin (4) "person" means an individual or entity of any kind; and
 new text end

new text begin (5) "control" means the ability to affect the management, operations, or policy
actions or decisions of a person, whether through ownership of voting securities, by
contract, or otherwise.
 new text end

new text begin (c)new text end A lease of real property to be used for a charter school, not excluded in paragraph
(a), must contain the following statement: "This lease is subject to Minnesota Statutes,
section 124D.10, subdivision 23a."

deleted text begin (c)deleted text end new text begin (d)new text end If a charter school enters into as lessee a lease with a related party and the
charter school subsequently closes, the commissioner has the right to recover from the
lessor any lease payments in excess of those that are reasonable under section 124D.11,
subdivision 4, clause (1).

Subd. 24.

Pupil enrollment upon nonrenewal or termination of charter school
contract.

If a contract is not renewed or is terminated according to subdivision 23, a
pupil who attended the school, siblings of the pupil, or another pupil who resides in the
same place as the pupil may enroll in the resident district or may submit an application
to a nonresident district according to section 124D.03 at any time. Applications and
notices required by section 124D.03 must be processed and provided in a prompt manner.
The application and notice deadlines in section 124D.03 do not apply under these
circumstances. The closed charter school must transfer the student's educational records
within ten business days of closure to the student's school district of residence where the
records must be retained or transferred under section 120A.22, subdivision 7.

Subd. 25.

Extent of specific legal authority.

(a) The board of directors of a charter
school may sue and be sued.

(b) The board may not levy taxes or issue bonds.

(c) The commissioner, deleted text begin a sponsordeleted text end new text begin an authorizernew text end , members of the board of deleted text begin a sponsordeleted text end new text begin
an authorizernew text end in deleted text begin theirdeleted text end official capacity, and employees of deleted text begin a sponsordeleted text end new text begin an authorizernew text end are
immune from civil or criminal liability with respect to all activities related to a charter
school they approve or deleted text begin sponsordeleted text end new text begin authorizenew text end . The board of directors shall obtain at least
the amount of and types of insurance deleted text begin required by the contract, according to subdivision
6.deleted text end new text begin up to the applicable tort liability limits under chapter 466. The charter school board
must submit a copy of the insurance policy to its authorizer before starting operations.
The charter school board must submit changes in its insurance carrier or policy to its
authorizer within 20 business days of the change.
new text end

deleted text begin Subd. 26. deleted text end

deleted text begin Definitions. deleted text end

deleted text begin For purposes of this section and section 124D.11:
 deleted text end

deleted text begin (1) A "Related party" is an affiliate or close relative of the other party in question, an
affiliate of a close relative, or a close relative of an affiliate.
 deleted text end

deleted text begin (2) "Affiliate" means a person that directly, or indirectly through one or more
intermediaries, controls, or is controlled by, or is under common control with, another
person.
 deleted text end

deleted text begin (3) "Close relative" means an individual whose relationship by blood, marriage, or
adoption to another individual is no more remote than first cousin.
 deleted text end

deleted text begin (4) "Person" means an individual or entity of any kind.
 deleted text end

deleted text begin (5) "Control" includes the terms "controlling," "controlled by," and "under common
control with" and means the possession, direct or indirect, of the power to direct or cause
the direction of the management, operations, or policies of a person, whether through the
ownership of voting securities, by contract, or otherwise.
 deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin (a) This section is effective the day following final enactment
and applies beginning August 1, 2009, unless otherwise specified in this effective date.
 new text end

new text begin (b) Subdivision 3, paragraph (b), clause (2), applies to an authorizer seeking
approval to charter a school after the effective date of this act. The changes in subdivision
3, paragraph (b), clause (2), shall not apply to a sponsor under Minnesota Statutes 2008,
section 124D.10, that is a party to a charter contract on the effective date of this act
except that subdivision 3, paragraph (b), clause (2), item (iv), applies to such sponsors
beginning July 1, 2012.
 new text end

Sec. 40.

Minnesota Statutes 2008, section 124D.11, subdivision 4, is amended to read:


Subd. 4.

Building lease aid.

new text begin (a) new text end When a charter school finds it economically
advantageous to rent or lease a building or land for any instructional purposes and it
determines that the total operating capital revenue under section 126C.10, subdivision 13,
is insufficient for this purpose, it may apply to the commissioner for building lease aid
for this purpose. The commissioner must review and either approve or deny a lease aid
application using the following criteria:

(1) the reasonableness of the price based on current market values;

(2) the extent to which the lease conforms to applicable state laws and rules; and

(3) the appropriateness of the proposed lease in the context of the space needs and
financial circumstances of the charter school.

A charter school must not use the building lease aid it receives for custodial, maintenance
service, utility, or other operating costs. The amount of building lease aid per pupil unit
served for a charter school for any year shall not exceed the lesser of (a) 90 percent of
the approved cost or (b) the product of the pupil units served for the current school year
times the greater of the charter school's building lease aid per pupil unit served for fiscal
year 2003, excluding the adjustment under Laws 2002, chapter 392, article 6, section 4,
or $1,200.

new text begin (b) A charter school using lease aid to make payments to a building corporation,
school district, or other governmental entity for the purpose of retiring the debt on that
building is eligible for the amount of lease aid calculated under paragraph (a) until
such time as the bonds or mortgage to cover the original purchase and renovation or
construction are retired. For each subsequent year, the charter school is eligible for lease
aid equal to 50 percent of the maximum lease aid amount in paragraph (a) unless the
commissioner approves an expansion of the charter school facility, in which case the
charter school is eligible for the full amount of lease aid under paragraph (a) until the
additional debt is retired.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies beginning August 1, 2009.
 new text end

Sec. 41.

Minnesota Statutes 2008, section 124D.11, subdivision 9, is amended to read:


Subd. 9.

Payment of aids to charter schools.

(a) Notwithstanding section
127A.45, subdivision 3, aid payments for the current fiscal year to a charter school deleted text begin not in
its first year of operationdeleted text end shall be of an equal amount on each of the deleted text begin 23deleted text end new text begin 24new text end payment dates.
deleted text begin A charter school in its first year of operation shall receive, on its first payment date, ten
percent of its cumulative amount guaranteed for the year and 22 payments of an equal
amount thereafter the sum of which shall equal the current year aid payment percentage
multiplied by the cumulative amount guaranteed.deleted text end

(b) Notwithstanding paragraph (a)new text begin and section 127A.45new text end , for a charter school ceasing
operationnew text begin on ornew text end prior to deleted text begin the end of a school year, the current year aid payment percentage
multiplied by the amount due for the school year may be paid to the school after audit
of prior fiscal year and current fiscal year pupil counts.deleted text end new text begin June 30 of a school year, for the
payment periods occurring after the school ceases serving students, the commissioner shall
withhold the estimated state aid owed the school. The charter school board of directors
and authorizer must submit to the commissioner a closure plan under chapter 308A or
317A, and financial information about the school's liabilities and assets. After receiving
the closure plan, financial information, an audit of pupil counts, documentation of lease
expenditures, and monitoring of special education expenditures, the commissioner may
release cash withheld and may continue regular payments up to the current year payment
percentages if further amounts are owed. If, based on audits and monitoring, the school
received state aid in excess of the amount owed, the commissioner shall retain aid withheld
sufficient to eliminate the aid overpayment.new text end For a charter school ceasing operations
prior to, or at the end of, a school year, notwithstanding section 127A.45, subdivision
3, preliminary final payments may be made afternew text begin receiving the closure plan,new text end audit of
pupil counts, monitoring of special education expenditures, deleted text begin anddeleted text end documentation of lease
expendituresnew text begin , and school submission of Uniform Financial Accounting and Reporting
Standards (UFARS) financial datanew text end for the final year of operation. Final payment may be
made upon receipt of audited financial statements under section 123B.77, subdivision 3.

(c)new text begin If a charter school fails to comply with the commissioner's directive to return,
for cause, federal or state funds administered by the department, the commissioner may
withhold an amount of state aid sufficient to satisfy the directive.
new text end

new text begin (d) If, within the timeline under section 471.425, a charter school fails to pay the state
of Minnesota, a school district, intermediate school district, or service cooperative after
receiving an undisputed invoice for goods and services, the commissioner may withhold
an amount of state aid sufficient to satisfy the claim and shall distribute the withheld
aid to the interested state agency, school district, intermediate school district, or service
cooperative. An interested state agency, school district, intermediate school district, or
education cooperative shall notify the commissioner when a charter school fails to pay an
undisputed invoice within 75 business days of when it received the original invoice.
 new text end

new text begin (e)new text end Notwithstanding section 127A.45, subdivision 3, and paragraph (a), 80 percent
of the start-up cost aid under subdivision 8 shall be paid within 45 days after the first day
of student attendance for that school year.

deleted text begin (d)deleted text end new text begin (f)new text end In order to receive state aid payments under this subdivision, a charter school
in its first three years of operation must submit a school calendar in the form and manner
requested by the department and a quarterly report to the Department of Education. The
report must list each student by grade, show the student's start and end dates, if any,
with the charter school, and for any student participating in a learning year program,
the report must list the hours and times of learning year activities. The report must be
submitted not more than two weeks after the end of the calendar quarter to the department.
The department must develop a Web-based reporting form for charter schools to use
when submitting enrollment reports. A charter school in its fourth and subsequent year of
operation must submit a school calendar and enrollment information to the department in
the form and manner requested by the department.

deleted text begin (e)deleted text end new text begin (g)new text end Notwithstanding sections 317A.701 to 317A.791, upon closure of a charter
school and satisfaction of creditors, cash and investment balances remaining shall be
returned to the state.

Sec. 42.

Minnesota Statutes 2008, section 124D.128, subdivision 2, is amended to read:


Subd. 2.

Commissioner designation.

(a) deleted text begin An area learning centerdeleted text end new text begin A state-approved
alternative programnew text end designated by the state must be a site. deleted text begin An area learning centerdeleted text end new text begin A
state-approved alternative programnew text end must provide services to students who meet the criteria
in section 124D.68 and who are enrolled in:

(1) a district that is served by the deleted text begin centerdeleted text end new text begin state-approved alternative programnew text end ; or

(2) a charter school located within the geographic boundaries of a district that is
served by the deleted text begin centerdeleted text end new text begin state-approved alternative programnew text end .

(b) A school district or charter school may be approved biennially by the state to
provide additional instructional programming that results in grade level acceleration. The
program must be designed so that students make grade progress during the school year
and graduate prior to the students' peers.

(c) To be designated, a district, charter school, or deleted text begin centerdeleted text end new text begin state-approved alternative
programnew text end must demonstrate to the commissioner that it will:

(1) provide a program of instruction that permits pupils to receive instruction
throughout the entire year; and

(2) develop and maintain a separate record system that, for purposes of section
126C.05, permits identification of membership attributable to pupils participating in the
program. The record system and identification must ensure that the program will not have
the effect of increasing the total average daily membership attributable to an individual
pupil as a result of a learning year program. The record system must include the date the
pupil originally enrolled in a learning year program, the pupil's grade level, the date of
each grade promotion, the average daily membership generated in each grade level, the
number of credits or standards earned, and the number needed to graduate.

(d) A student who has not completed a school district's graduation requirements
may continue to enroll in courses the student must complete in order to graduate until
the student satisfies the district's graduation requirements or the student is 21 years old,
whichever comes first.

Sec. 43.

Minnesota Statutes 2008, section 124D.128, subdivision 3, is amended to read:


Subd. 3.

Student planning.

A district, charter school, or deleted text begin area learning centerdeleted text end new text begin
state-approved alternative programnew text end must inform all pupils and their parents about the
learning year program and that participation in the program is optional. A continual
learning plan must be developed at least annually for each pupil with the participation
of the pupil, parent or guardian, teachers, and other staff; each participant must sign and
date the plan. The plan must specify the learning experiences that must occur during the
entire fiscal year and are necessary for grade progression or, for secondary students,
graduation. The plan must include:

(1) the pupil's learning objectives and experiences, including courses or credits the
pupil plans to complete each year and, for a secondary pupil, the graduation requirements
the student must complete;

(2) the assessment measurements used to evaluate a pupil's objectives;

(3) requirements for grade level or other appropriate progression; and

(4) for pupils generating more than one average daily membership in a given grade,
an indication of which objectives were unmet.

The plan may be modified to conform to district schedule changes. The district may
not modify the plan if the modification would result in delaying the student's time of
graduation.

Sec. 44.

Minnesota Statutes 2008, section 124D.42, subdivision 6, is amended to read:


Subd. 6.

Program training.

The commission must, within available resources:

(1) orient each grantee organization in the nature, philosophy, and purpose of the
program;new text begin and
new text end

(2) build an ethic of community service through general community service trainingdeleted text begin ;
anddeleted text end new text begin .
new text end

deleted text begin (3) provide additional training as it determines necessary, which may include
training in evaluating early literacy skills and teaching reading to preschool children
through the St. Croix River Education District under Laws 2001, First Special Session
chapter 6, article 2, section 70, to assist local Head Start organizations in establishing and
evaluating Head Start programs for developing children's early literacy skills.
 deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 45.

Minnesota Statutes 2008, section 124D.42, is amended by adding a
subdivision to read:


new text begin Subd. 6a. new text end

new text begin Minnesota reading corps program. new text end

new text begin (a) A Minnesota reading corps
program is established to provide Americorps members with a data-based problem-solving
model of literacy instruction to use in helping to train local Head Start program providers,
other prekindergarten program providers, and staff in schools with students in kindergarten
through grade 3 to evaluate and teach early literacy skills to children age 3 to grade 3.
new text end

new text begin (b) Literacy programs under this subdivision must comply with the provisions
governing literacy program goals and data use under section 119A.50, subdivision 3,
paragraph (b).
 new text end

Sec. 46.

Minnesota Statutes 2008, section 124D.68, subdivision 2, is amended to read:


Subd. 2.

Eligible pupils.

A pupil under the age of 21 or who meets the requirements
of section 120A.20, subdivision 1, paragraph (c), is eligible to participate in the graduation
incentives program, if the pupil:

(1) performs substantially below the performance level for pupils of the same age
in a locally determined achievement test;

(2) is deleted text begin at least one yeardeleted text end behind in satisfactorily completing coursework or obtaining
credits for graduation;

(3) is pregnant or is a parent;

(4) has been assessed as chemically dependent;

(5) has been excluded or expelled according to sections 121A.40 to 121A.56;

(6) has been referred by a school district for enrollment in an eligible program or
a program pursuant to section 124D.69;

(7) is a victim of physical or sexual abuse;

(8) has experienced mental health problems;

(9) has experienced homelessness sometime within six months before requesting a
transfer to an eligible program;

(10) speaks English as a second language or has limited English proficiency; or

(11) has withdrawn from school or has been chronically truant; or

(12) is being treated in a hospital in the seven-county metropolitan area for cancer or
other life threatening illness or is the sibling of an eligible pupil who is being currently
treated, and resides with the pupil's family at least 60 miles beyond the outside boundary
of the seven-county metropolitan area.

Sec. 47.

Minnesota Statutes 2008, section 124D.68, subdivision 3, is amended to read:


Subd. 3.

Eligible programs.

(a) A pupil who is eligible according to subdivision 2
may enroll in deleted text begin area learning centersdeleted text end new text begin a state-approved alternative programnew text end under sections
123A.05 to 123A.08.

(b) A pupil who is eligible according to subdivision 2 and who is deleted text begin between the ages
of 16 and 21deleted text end new text begin a high school junior or seniornew text end may enroll in postsecondary courses under
section 124D.09.

(c) A pupil who is eligible under subdivision 2, may enroll in any public elementary
or secondary education program.

(d) A pupil who is eligible under subdivision 2, may enroll in any nonpublic,
nonsectarian school that has contracted with the serving school district to provide
educational services. However, notwithstanding other provisions of this section, only a
pupil who is eligible under subdivision 2, clause (12), may enroll in a contract alternative
school that is specifically structured to provide educational services to such a pupil.

(e) A pupil who is between the ages of 16 and 21 may enroll in any adult basic
education programs approved under section 124D.52 and operated under the community
education program contained in section 124D.19.

Sec. 48.

Minnesota Statutes 2008, section 124D.68, subdivision 4, is amended to read:


Subd. 4.

Additional eligible program.

A pupil who is at least 16 years of age,
who is eligible under subdivision 2, deleted text begin clause (a),deleted text end and who has been enrolled only in a
public school, if the pupil has been enrolled in any school, during the year immediately
before transferring under this subdivision, may transfer to any nonpublic school that has
contracted with the serving school district to provide nonsectarian educational services.
The school must enroll every eligible pupil who seeks to transfer to the school under
this program subject to available space.

Sec. 49.

Minnesota Statutes 2008, section 124D.68, subdivision 5, is amended to read:


Subd. 5.

Pupil enrollment.

new text begin (a) new text end Any eligible pupil may apply to enroll in an eligible
program. Approval of the resident district is not required for:

(1) an eligible pupil to enroll in any eligible program in a nonresident district
under subdivision 3 or 4 or deleted text begin an area learning centerdeleted text end new text begin a state-approved alternative programnew text end
established under section 123A.05; or

(2) an eligible pupil under subdivision 2, to enroll in an adult basic education
program approved under section 124D.52.

new text begin (b) Notwithstanding paragraph (a), a nonresident district must first approve the
enrollment application of any eligible pupil who was expelled under section 121A.45 for a
reason stated in section 124D.03, subdivision 1, paragraph (b).
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2009-2010 school year and
later.
 new text end

Sec. 50.

Minnesota Statutes 2008, section 124D.83, subdivision 4, is amended to read:


Subd. 4.

Early childhood family education revenue.

A school receiving aid
under this section deleted text begin is eligibledeleted text end new text begin may apply annually to the commissioner new text end to receive new text begin an new text end early
childhood family education deleted text begin revenuedeleted text end new text begin grantnew text end to provide early childhood family education
programs for parents and children who are enrolled or eligible for enrollment in a federally
recognized tribe. deleted text begin The revenue equals 1.5 times the statewide average expenditure per
participant under section 124D.135, times the number of children and parents participating
full time in the program.deleted text end The deleted text begin program mustdeleted text end new text begin grant must be used for programs and services
thatnew text end comply with section 124D.13, except that the school is not required to provide a
community education program or establish a community education advisory council. The
program must be designed to improve the skills of parents and promote American Indian
history, language, and culture. The school must make affirmative efforts to encourage
participation by fathers. Admission may not be limited to those enrolled in or eligible for
enrollment in a federally recognized tribe.

Sec. 51.

Minnesota Statutes 2008, section 124D.86, subdivision 1, is amended to read:


Subdivision 1.

Use of revenue.

new text begin (a) An adjoining district that develops a plan under
Minnesota Rules, parts 3535.0160 and 3535.0170, is not required to implement the plan.
 new text end

new text begin (b) Districts must use new text end integration revenue under this section deleted text begin must be useddeleted text end for
programs established under a desegregation plan filed with the Department of Education
according to Minnesota Rules, parts 3535.0100 to 3535.0180, or under court order. The
revenue must be used deleted text begin to create or enhance learning opportunities which are designed to
provide opportunitiesdeleted text end for students to have increasednew text begin and sustainednew text end interracial contacts
new text begin and improved educational opportunities and outcomes designed to close the academic
achievement gap between white students and protected students as defined in Minnesota
Rules, part 3535.0110, subpart 4, new text end through classroom experiences, staff initiatives, and
other educationally related programsnew text begin , consistent with subdivision 1bnew text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2010-2011 school year and
later.
 new text end

Sec. 52.

Minnesota Statutes 2008, section 124D.86, subdivision 1a, is amended to read:


Subd. 1a.

Budget approval process.

Each year before a district receives any
revenue under subdivision 3, deleted text begin clause (4), (5), or (6),deleted text end the district new text begin by April 1new text end must submit to
the Department of Education, for its review and approval new text begin by April 30new text end a budget detailing the
costs of the desegregation/integration plan filed under Minnesota Rules, parts 3535.0100
to 3535.0180. Notwithstanding chapter 14, the department may develop criteria for
budget approvalnew text begin , consistent with subdivision 1bnew text end . The department shall consult with the
Desegregation Advisory Board in developing these criteria. The criteria developed by the
department deleted text begin shoulddeleted text end new text begin mustnew text end address, at a minimum, the following:

(1) budget items cannot be approved unless they are part of any overall desegregation
plan approved by the district for isolated sites or by the Multidistrict Collaboration
Council and deleted text begin participationdeleted text end new text begin participatingnew text end individual members;

(2) the budget must indicate how revenue expenditures will be used specifically to
support increased deleted text begin opportunities fordeleted text end new text begin and sustainednew text end interracial deleted text begin contactdeleted text end new text begin contacts and improved
educational opportunities and outcomes designed to close the academic achievement
gap between white students and protected students as defined in Minnesota Rules, part
3535.0110, subpart 4, consistent with subdivision 1bnew text end ;

(3) components of the budget to be considered by the department, including staffing,
curriculum, transportation, facilities, materials, and equipment and reasonable planning
costs, as determined by the department; and

(4) if plans are proposed to enhance existing programs, the total budget being
appropriated to the program must be included, indicating what part is to be funded using
integration revenue and what part is to be funded using other revenues.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2010-2011 school year and
later.
 new text end

Sec. 53.

Minnesota Statutes 2008, section 124D.86, subdivision 1b, is amended to read:


Subd. 1b.

Plan components.

new text begin Each year a district's board must approve the new text end plans
submitted by each district under Minnesota Rules, parts 3535.0160 and 3535.0170,
deleted text begin must be approved by the district's board each yeardeleted text end before integration revenue deleted text begin will bedeleted text end new text begin isnew text end
awarded. If a district is applying for revenue for a plan that is part of a multidistrict
council, the individual district shall not receive revenue unless it ratifies the plan adopted
by its multidistrict council or approves a modified plan with a written explanation of
any modifications. Each plan shall deleted text begin containdeleted text end :

(1) deleted text begin an identification ofdeleted text end new text begin identifynew text end the integration issues at the sites or districts covered
by Minnesota Rules, parts 3535.0100 to 3535.0180;

(2) deleted text begin a description ofdeleted text end new text begin describenew text end the community outreach that preceded the integration
plan, such that the commissioner can determine whether the membership of the planning
councils complied with the requirements of Minnesota Rules, parts 3535.0100 to
3535.0180; deleted text begin and
deleted text end

(3) deleted text begin thedeleted text end new text begin identifynew text end specific goals of the integration plannew text begin that is premised on valid and
reliable measures, effective and efficient use of resources, and continuous adaptation of
best practices;
new text end

new text begin (4) provide for implementing innovative and practical strategies and programs such
as magnet schools, transportation, research-based programs to improve the performance of
protected students with lower measured achievement on state or local assessments, staff
development for teachers in cultural competency, formative assessments, and increased
numbers of teachers of color that enable the district to achieve annual progress in realizing
the goals in its plan; and
 new text end

new text begin (5) establish valid and reliable longitudinal measures for the district to use in
demonstrating to the commissioner the amount of progress it has achieved in realizing
the goals in its plannew text end .

By June 30 of the subsequent fiscal year, each district shall report to the commissioner in
writing about the extent to which the integration goals identified in the plan were met.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2010-2011 school year and
later.
 new text end

Sec. 54.

Minnesota Statutes 2008, section 126C.05, subdivision 15, is amended to read:


Subd. 15.

Learning year pupil units.

(a) When a pupil is enrolled in a learning
year program under section 124D.128, an area learning center new text begin or an alternative learning
program approved by the commissioner new text end under sections 123A.05 and 123A.06, deleted text begin an
alternative program approved by the commissioner,deleted text end or a contract alternative program
under section 124D.68, subdivision 3, paragraph (d), or subdivision 3a, for more than
1,020 hours in a school year for a secondary student, more than 935 hours in a school year
for an elementary student, or more than 425 hours in a school year for a kindergarten
student without a disability, that pupil may be counted as more than one pupil in average
daily membership for purposes of section 126C.10, subdivision 2a. The amount in excess
of one pupil must be determined by the ratio of the number of hours of instruction
provided to that pupil in excess of: (i) the greater of 1,020 hours or the number of hours
required for a full-time secondary pupil in the district to 1,020 for a secondary pupil; (ii)
the greater of 935 hours or the number of hours required for a full-time elementary pupil
in the district to 935 for an elementary pupil in grades 1 through 6; and (iii) the greater of
425 hours or the number of hours required for a full-time kindergarten student without a
disability in the district to 425 for a kindergarten student without a disability. Hours that
occur after the close of the instructional year in June shall be attributable to the following
fiscal year. A kindergarten student must not be counted as more than 1.2 pupils in average
daily membership under this subdivision. A student in grades 1 through 12 must not be
counted as more than 1.2 pupils in average daily membership under this subdivision.

(b)(i) To receive general education revenue for a pupil in an new text begin area learning center
or new text end alternative new text begin learning new text end program that has an independent study component, a district
must meet the requirements in this paragraph. The district must develop, for the pupil,
a continual learning plan consistent with section 124D.128, subdivision 3. Each school
district that has deleted text begin a state-approved publicdeleted text end new text begin an area learning center ornew text end alternative new text begin learning
new text end program must reserve revenue in an amount equal to at least 90 percent of the district
average general education revenue per pupil unit deleted text begin less compensatory revenue per pupil
unitdeleted text end new text begin , minus an amount equal to the product of the formula allowance according to section
126C.10, subdivision 2, times .0485, calculated without basic skills and transportation
sparsity revenue,new text end times the number of pupil units generated by students attending deleted text begin a
state-approved publicdeleted text end new text begin an area learning center ornew text end alternative new text begin learning new text end program. The amount
of reserved revenue available under this subdivision may only be spent for program costs
associated with the deleted text begin state-approved publicdeleted text end new text begin area learning center ornew text end alternative new text begin learning
new text end program. deleted text begin Compensatory revenue must be allocated according to section 126C.15,
subdivision 2.deleted text end new text begin Basic skills revenue generated according to section 126C.10, subdivision 4,
by pupils attending the eligible program must be allocated to the program.
new text end

(ii) General education revenue for a pupil in deleted text begin an approveddeleted text end new text begin a state-approvednew text end
alternative program without an independent study component must be prorated for a
pupil participating for less than a full year, or its equivalent. The district must develop a
continual learning plan for the pupil, consistent with section 124D.128, subdivision 3.
Each school district that has deleted text begin a state-approved publicdeleted text end new text begin an area learning center ornew text end alternative
new text begin learning new text end program must reserve revenue in an amount equal to at least 90 percent of the
district average general education revenue per pupil unit deleted text begin less compensatory revenue per
pupil unitdeleted text end new text begin , minus an amount equal to the product of the formula allowance according
to section 126C.10, subdivision 2, times .0485, calculated without basic skills and
transportation sparsity revenue,new text end times the number of pupil units generated by students
attending deleted text begin a state-approved publicdeleted text end new text begin an area learning center ornew text end alternative new text begin learning new text end program.
The amount of reserved revenue available under this subdivision may only be spent for
program costs associated with the deleted text begin state-approved publicdeleted text end new text begin area learning center ornew text end alternative
new text begin learning new text end program. deleted text begin Compensatory revenue must be allocated according to section 126C.15,
subdivision 2.deleted text end new text begin Basic skills revenue generated according to section 126C.10, subdivision 4,
by pupils attending the eligible program must be allocated to the program.new text end

(iii) General education revenue for a pupil in deleted text begin an approveddeleted text end new text begin a state-approvednew text end
alternative program that has an independent study component must be paid for each hour
of teacher contact time and each hour of independent study time completed toward a
credit or graduation standards necessary for graduation. Average daily membership for a
pupil shall equal the number of hours of teacher contact time and independent study
time divided by 1,020.

(iv) For deleted text begin andeleted text end new text begin a state-approvednew text end alternative program having an independent study
component, the commissioner shall require a description of the courses in the program, the
kinds of independent study involved, the expected learning outcomes of the courses, and
the means of measuring student performance against the expected outcomes.

Sec. 55.

Minnesota Statutes 2008, section 126C.05, subdivision 20, is amended to read:


Subd. 20.

Project-based average daily membership.

(a) new text begin Project-based is an
instructional program where students complete coursework for credit at an individual pace
that is primarily student-led and may be completed on site, in the community, or online. A
project-based program may be made available to all or designated students and grades
in a school. new text end To receive general education revenue for a pupil enrolled in a public school
with a project-based program, a school must meet the requirements in this paragraph.
The school must:

(1) deleted text begin register with the commissioner as a project-based program by May 30 of the
preceding fiscal yeardeleted text end new text begin apply and receive approval from the commissioner as a project-based
program at least 90 days prior to starting the programnew text end ;

(2) provide a minimum teacher contact of no less than one hour per week per
project-based credit for each pupil;

new text begin (3) ensure that the program will not increase the total average daily membership
generated by the student and that there will be the expectation that the students will be
making typical progression towards high school graduation;
 new text end

deleted text begin (3)deleted text end new text begin (4)new text end maintain a record system that shows when each credit or portion thereof was
reported for membership for each pupil; and

deleted text begin (4)deleted text end new text begin (5)new text end report pupil membership consistent with paragraph (b).

(b) The commissioner must develop a formula for reporting pupil membership to
compute average daily membership for each deleted text begin registereddeleted text end new text begin approved new text end project-based deleted text begin schooldeleted text end new text begin
programnew text end . Average daily membership for a pupil in deleted text begin a registereddeleted text end new text begin an approved new text end project-based
program is the lesser of:

(1) 1.0; or

(2) the ratio of (i) the number of membership hours generated by project-based
credits completed during the school year plus membership hours generated by credits
completed in a seat-based setting to (ii) the annual required instructional hours at that
grade level. Membership hours for a partially completed project-based credit must be
prorated.new text begin General education revenue for a pupil in a project-based program must be
prorated for a pupil participating for less than a full year, or its equivalent.
new text end

new text begin (c) For a program that has not been approved by the commissioner for project-based
learning but an auditor or other site visit deems that any portion or credits awarded
by the school are project-based, student membership must be computed according to
paragraph (b).
 new text end

Sec. 56.

Minnesota Statutes 2008, section 126C.10, subdivision 34, is amended to read:


Subd. 34.

Basic alternative teacher compensation aid.

(a) For fiscal years
2007 deleted text begin and laterdeleted text end new text begin , 2008, and 2009new text end , the basic alternative teacher compensation aid for a
school district with a plan approved under section 122A.414, subdivision 2b, equals deleted text begin 65deleted text end
new text begin 73.1 new text end percent of the alternative teacher compensation revenue under section 122A.415,
subdivision 1. The basic alternative teacher compensation aid for an intermediate school
district or charter school with a plan approved under section 122A.414, subdivisions 2a
and 2b, if the recipient is a charter school, equals $260 times the number of pupils enrolled
in the school on October 1 of the previous fiscal year, or on October 1 of the current fiscal
year for a charter school in the first year of operation, times the ratio of the sum of the
alternative teacher compensation aid and alternative teacher compensation levy for all
participating school districts to the maximum alternative teacher compensation revenue
for those districts under section 122A.415, subdivision 1.

new text begin (b) For fiscal years 2010 and later, the basic alternative teacher compensation aid for
a school with a plan approved under section 122A.414, subdivision 2b, equals 65 percent
of the alternative teacher compensation revenue under section 122A.415, subdivision 1.
The basic alternative teacher compensation aid for an intermediate school district or
charter school with a plan approved under section 122A.414, subdivisions 2a and 2b, if
the recipient is a charter school, equals $260 times the number of pupils enrolled in the
school on October 1 of the previous year, or on October 1 of the current year for a charter
school in the first year of operation, times the ratio of the sum of the alternative teacher
compensation aid and alternative teacher compensation levy for all participating school
districts to the maximum alternative teacher compensation revenue for those districts
under section 122A.415, subdivision 1.
 new text end

deleted text begin (b)deleted text end new text begin (c)new text end Notwithstanding paragraphs (a) and (b) and section 122A.415, subdivision
1, the state total basic alternative teacher compensation aid entitlement must not exceed
$75,636,000 for fiscal year 2007 and later. The commissioner must limit the amount
of alternative teacher compensation aid approved under section 122A.415 so as not to
exceed these limits.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 57.

new text begin [127A.70] MINNESOTA P-20 EDUCATION PARTNERSHIP.
 new text end

new text begin Subdivision 1. new text end

new text begin Establishment; membership. new text end

new text begin A P-20 education partnership is
established to create a seamless system of education that maximizes achievements of
all students, from early childhood through elementary, secondary, and postsecondary
education, while promoting the efficient use of financial and human resources. The
partnership shall consist of major statewide educational groups or constituencies or
noneducational statewide organizations with a stated interest in P-20 education. The initial
membership of the partnership includes the members serving on the Minnesota P-16
Education Partnership and four legislators appointed as follows:
 new text end

new text begin (1) one senator from the majority party and one senator from the minority party,
appointed by the Subcommittee on Committees of the Committee on Rules and
Administration; and
 new text end

new text begin (2) one member of the house of representatives appointed by the speaker of the
house and one member appointed by the minority leader of the house of representatives.
 new text end

new text begin The chair of the P-16 education partnership must convene the first meeting of the
P-20 partnership. Prospective members may be nominated by any partnership member and
new members will be added with the approval of a two-thirds majority of the partnership.
The partnership will also seek input from nonmember organizations whose expertise can
help inform the partnership's work.
 new text end

new text begin Partnership members shall be represented by the chief executives, presidents, or
other formally designated leaders of their respective organizations, or their designees. The
partnership shall meet at least three times during each calendar year.
 new text end

new text begin Subd. 2. new text end

new text begin Powers and duties; report. new text end

new text begin The partnership shall develop
recommendations to the governor and the legislature designed to maximize the
achievement of all P-20 students while promoting the efficient use of state resources,
thereby helping the state realize the maximum value for its investment. These
recommendations may include, but are not limited to, strategies, policies, or other actions
focused on:
 new text end

new text begin (1) improving the quality of and access to education at all points from preschool
through graduate education;
 new text end

new text begin (2) improving preparation for, and transitions to, postsecondary education and
work; and
 new text end

new text begin (3) ensuring educator quality by creating rigorous standards for teacher recruitment,
teacher preparation, induction and mentoring of beginning teachers, and continuous
professional development for career teachers.
 new text end

new text begin By January 15 of each year, the partnership shall submit a report to the governor
and to the chairs and ranking minority members of the legislative committees and
divisions with jurisdiction over P-20 education policy and finance that summarizes the
partnership's progress in meeting its goals and identifies the need for any draft legislation
when necessary to further the goals of the partnership to maximize student achievement
while promoting efficient use of resources.
 new text end

new text begin Subd. 3. new text end

new text begin Expiration. new text end

new text begin Notwithstanding section 15.059, subdivision 5, the partnership
is permanent and does not expire.
 new text end

Sec. 58.

Minnesota Statutes 2008, section 171.05, subdivision 2, is amended to read:


Subd. 2.

Person less than 18 years of age.

(a) Notwithstanding any provision
in subdivision 1 to the contrary, the department may issue an instruction permit to an
applicant who is 15, 16, or 17 years of age and who:

(1) has completed a course of driver education in another state, has a previously
issued valid license from another state, or is enrolled in either:

(i) a public, private, or commercial driver education program that is approved by
the commissioner of public safety and that includes classroom and behind-the-wheel
training; or

(ii) an approved behind-the-wheel driver education program when the student is
receiving full-time instruction in a home school within the meaning of sections 120A.22
and 120A.24, the student is working toward a homeschool diploma, deleted text begin the student's status
as a homeschool student has been certified by the superintendent of the school district in
which the student resides, anddeleted text end the student is taking home-classroom driver training with
classroom materials approved by the commissioner of public safetynew text begin , and the student's
parent or guardian has certified the student's homeschool and home-classroom driver
training status on the form approved by the commissionernew text end ;

(2) has completed the classroom phase of instruction in the driver education program;

(3) has passed a test of the applicant's eyesight;

(4) has passed a department-administered test of the applicant's knowledge of traffic
laws;

(5) has completed the required application, which must be approved by (i) either
parent when both reside in the same household as the minor applicant or, if otherwise, then
(ii) the parent or spouse of the parent having custody or, in the event there is no court order
for custody, then (iii) the parent or spouse of the parent with whom the minor is living
or, if items (i) to (iii) do not apply, then (iv) the guardian having custody of the minor or,
in the event a person under the age of 18 has no living father, mother, or guardian, or is
married or otherwise legally emancipated, then (v) the applicant's adult spouse, adult close
family member, or adult employer; provided, that the approval required by this clause
contains a verification of the age of the applicant and the identity of the parent, guardian,
adult spouse, adult close family member, or adult employer; and

(6) has paid the fee required in section 171.06, subdivision 2.

(b) new text begin For the purposes of determining compliance with the certification of paragraph
(a), clause (1), item (ii), the commissioner may request verification of a student's
homeschool status from the superintendent of the school district in which the student
resides and the superintendent shall provide that verification.
new text end

new text begin (c) new text end The instruction permit is valid for two years from the date of application and
may be renewed upon payment of a fee equal to the fee for issuance of an instruction
permit under section 171.06, subdivision 2.

Sec. 59.

Minnesota Statutes 2008, section 171.17, subdivision 1, is amended to read:


Subdivision 1.

Offenses.

(a) The department shall immediately revoke the license
of a driver upon receiving a record of the driver's conviction of:

(1) manslaughter resulting from the operation of a motor vehicle or criminal
vehicular homicide or injury under section 609.21;

(2) a violation of section 169A.20 or 609.487;

(3) a felony in the commission of which a motor vehicle was used;

(4) failure to stop and disclose identity and render aid, as required under section
169.09, in the event of a motor vehicle accident, resulting in the death or personal injury
of another;

(5) perjury or the making of a false affidavit or statement to the department under
any law relating to the new text begin application, new text end ownership or operation of a motor vehiclenew text begin , including
on the certification required under section 171.05, subdivision 2, clause (1), item (ii), to
issue an instruction permit to a homeschool studentnew text end ;

(6) except as this section otherwise provides, three charges of violating within a
period of 12 months any of the provisions of chapter 169 or of the rules or municipal
ordinances enacted in conformance with chapter 169, for which the accused may be
punished upon conviction by imprisonment;

(7) two or more violations, within five years, of the misdemeanor offense described
in section 169.444, subdivision 2, paragraph (a);

(8) the gross misdemeanor offense described in section 169.444, subdivision 2,
paragraph (b);

(9) an offense in another state that, if committed in this state, would be grounds for
revoking the driver's license; or

(10) a violation of an applicable speed limit by a person driving in excess of 100
miles per hour. The person's license must be revoked for six months for a violation of
this clause, or for a longer minimum period of time applicable under section 169A.53,
169A.54, or 171.174.

(b) The department shall immediately revoke the school bus endorsement of a driver
upon receiving a record of the driver's conviction of the misdemeanor offense described in
section 169.443, subdivision 7.

Sec. 60.

Minnesota Statutes 2008, section 171.22, subdivision 1, is amended to read:


Subdivision 1.

Violations.

With regard to any driver's license, including a
commercial driver's license, it shall be unlawful for any person:

(1) to display, cause or permit to be displayed, or have in possession, any fictitious
or fraudulently altered driver's license or Minnesota identification card;

(2) to lend the person's driver's license or Minnesota identification card to any other
person or knowingly permit the use thereof by another;

(3) to display or represent as one's own any driver's license or Minnesota
identification card not issued to that person;

(4) to use a fictitious name or date of birth to any police officer or in any application
for a driver's license or Minnesota identification card, or to knowingly make a false
statement, or to knowingly conceal a material fact, or otherwise commit a fraud in any
such application;

(5) to alter any driver's license or Minnesota identification card;

(6) to take any part of the driver's license examination for another or to permit
another to take the examination for that person;

(7) to make a counterfeit driver's license or Minnesota identification card;

(8) to use the name and date of birth of another person to any police officer for the
purpose of falsely identifying oneself to the police officer; deleted text begin or
deleted text end

(9) to display as a valid driver's license any canceled, revoked, or suspended driver's
license. A person whose driving privileges have been withdrawn may display a driver's
license only for identification purposesnew text begin ; or
new text end

new text begin (10) to submit a false affidavit or statement to the department on the certification
required under section 171.05, subdivision 2, clause (1), item (ii), to issue an instruction
permit to a homeschool studentnew text end .

Sec. 61.

Minnesota Statutes 2008, section 181A.05, subdivision 1, is amended to read:


Subdivision 1.

When issued.

Any minor 14 or 15 years of age who wishes to work
on school days during school hours shall first secure an employment certificate. The
certificate shall be issued only by the school district superintendent, the superintendent's
agent, deleted text begin ordeleted text end some other person designated by the Board of Educationnew text begin , or by the person in
charge of providing instruction for students enrolled in nonpublic schools as defined in
section 120A.22, subdivision 4new text end . The employment certificate shall be issued only for
a specific position with a designated employer and shall be issued only in the following
circumstances:

(1) if a minor is to be employed in an occupation not prohibited by rules promulgated
under section 181A.09 and as evidence thereof presents a signed statement from the
prospective employer; and

(2) if the parent or guardian of the minor consents to the employment; and

(3) if the issuing officer believes the minor is physically capable of handling the job
in question and further believes the best interests of the minor will be served by permitting
the minor to work.

Sec. 62.

Minnesota Statutes 2008, section 471.975, is amended to read:


471.975 MAY PAY DIFFERENTIAL OF RESERVE ON ACTIVE DUTY.

(a) Except as provided in paragraph (b), a statutory or home rule charter city, county,
town, or other political subdivision may pay to each eligible member of the National
Guard or other reserve component of the armed forces of the United States an amount
equal to the difference between the member's deleted text begin basicdeleted text end new text begin basenew text end active duty military salary and the
salary the member would be paid as an active political subdivision employee, including
any adjustments the member would have received if not on leave of absence. This
payment may be made only to a person whose deleted text begin basicdeleted text end new text begin basenew text end active duty military salary is less
than the salary the person would be paid as an active political subdivision employee. Back
pay authorized by this section may be paid in a lump sum. Payment under this section
must not extend beyond four years from the date the employee reported for active service,
plus any additional time the employee may be legally required to serve.

(b) Subject to the limits under paragraph (g), each school district shall pay to each
eligible member of the National Guard or other reserve component of the armed forces of
the United States an amount equal to the difference between the member's deleted text begin basicdeleted text end new text begin basenew text end active
duty military salary and the salary the member would be paid as an active school district
employee, including any adjustments the member would have received if not on leave of
absence. The pay differential must be based on a comparison between the member's daily
new text begin basenew text end rate of active duty pay, calculated by dividing the member's new text begin basenew text end military monthly
salary by the number of paid days in the month, and the member's daily rate of pay for the
member's school district salary, calculated by dividing the member's total school district
salary by the number of contract days. The member's salary as a school district employee
must include the member's basic salary and any additional salary the member earns from
the school district for cocurricular new text begin and extracurricular new text end activities. The differential payment
under this paragraph must be the difference between the daily new text begin basenew text end rates of military pay
times the number of school district contract days the member misses because of military
active duty. This payment may be made only to a person whose deleted text begin basic active duty military
salarydeleted text end new text begin daily base rate of active duty paynew text end is less than the deleted text begin salary the person would be paiddeleted text end new text begin
person's daily rate of paynew text end as an active school district employee. Payments may be made at
the intervals at which the member received pay as a school district employee. Payment
under this section must not extend beyond four years from the date the employee reported
for active service, plus any additional time the employee may be legally required to serve.

(c) An eligible member of the reserve components of the armed forces of the United
States is a reservist or National Guard member who was an employee of a political
subdivision at the time the member reported for active service on or after May 29, 2003,
or who is on active service on May 29, 2003.

(d) Except as provided in paragraph (e) and elsewhere in Minnesota Statutes, a
statutory or home rule charter city, county, town, or other political subdivision has total
discretion regarding employee benefit continuation for a member who reports for active
service and the terms and conditions of any benefit.

(e) A school district must continue the employee's enrollment in health and dental
coverage, and the employer contribution toward that coverage, until the employee is
covered by health and dental coverage provided by the armed forces. If the employee had
elected dependent coverage for health or dental coverage as of the time that the employee
reported for active service, a school district must offer the employee the option to continue
the dependent coverage at the employee's own expense. A school district must permit
the employee to continue participating in any pretax account in which the employee
participated when the employee reported for active service, to the extent of employee pay
available for that purpose.

(f) For purposes of this section, "active service" has the meaning given in section
190.05, subdivision 5, but excludes service performed exclusively for purposes of:

(1) basic combat training, advanced individual training, annual training, and periodic
inactive duty training;

(2) special training periodically made available to reserve members; and

(3) service performed in accordance with section 190.08, subdivision 3.

(g) A school district making payments under paragraph (b) shall place a sum equal
to any difference between the amount of salary that would have been paid to the employee
who is receiving the payments and the amount of salary being paid to substitutes for
that employee into a special fund that must be used to pay or partially pay the deployed
employee's payments under paragraph (b). A school district is required to pay only this
amount to the deployed school district employee.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to members of the National Guard and other reserve components of the United
States armed forces serving in active military service on or after that date.
 new text end

Sec. 63. new text begin IMPLEMENTING RIGOROUS COURSEWORK MEASURES
RELATED TO STUDENT PERFORMANCE.
new text end

new text begin To implement the requirements of Minnesota Statutes, section 120B.35, subdivision
3, paragraph (c), clauses (1) and (2), and to help parents and members of the public better
understand the reported data, the commissioner of education must convene a group
of recognized and qualified experts and interested stakeholders, including parents and
teachers among other stakeholders, to develop a model projecting anticipated performance
of each high school on preparation and rigorous coursework measures that compares the
school with similar schools. The model must use information about entering high school
students based on particular background characteristics that are predictive of differing
rates of college readiness. These characteristics include grade 8 achievement levels, high
school student mobility, high school student attendance, and the size of each entering ninth
grade class. The group of experts and stakeholders may examine other characteristics not
part of the prediction model including the nine student categories identified under the
federal 2001 No Child Left Behind Act, and two student gender categories of male and
female, respectively. The commissioner annually must use the predicted level of entering
students' performance to provide a context for interpreting graduating students' actual
performance. The group convened under this section expires June 30, 2011.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to school report cards beginning July 1, 2011.
 new text end

Sec. 64. new text begin IMPLEMENTING MEASURES FOR ASSESSING SCHOOL SAFETY
AND STUDENTS' ENGAGEMENT AND CONNECTION AT SCHOOL .
new text end

new text begin (a) To implement the requirements of Minnesota Statutes, section 120B.35,
subdivision 3, paragraph (d), the commissioner of education, in consultation with
interested stakeholders, including parents and teachers among other stakeholders,
must convene a group of recognized and qualified experts on student engagement and
connection and classroom teachers currently teaching in Minnesota schools to:
 new text end

new text begin (1) identify highly reliable variables of student engagement and connection that
may include student attendance, home support for learning, and student participation in
out-of-school activities, among other variables; and
 new text end

new text begin (2) determine how to report "safety" in order to comply with federal law.
 new text end

new text begin (b) The commissioner must submit a written report and all the group's working
papers to the education committees of the house of representatives and senate by February
15, 2010, presenting the group's responses to paragraph (a), clauses (1) and (2). The
commissioner must submit a second, related report to the education committees of the
legislature by February 15, 2013, indicating the content and analysis of and the format
for reporting the data collected in the 2010-2011 and 2011-2012 school years under
Minnesota Statutes, section 120B.35, subdivision 3, paragraph (d). The group convened
under this section expires December 31, 2013.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to school report cards beginning July 1, 2013.
 new text end

Sec. 65. new text begin EXAMINING THE CHARACTERISTICS AND IMPACT OF HIGH
STAKES MATH AND SCIENCE TESTS IN THE CONTEXT OF AWARDING
HIGH SCHOOL DIPLOMAS.
new text end

new text begin (a) To carefully and responsibly determine the state policy of administering high
stakes math and science tests in the context of awarding high school diplomas, the
Independent Office of Educational Accountability under Minnesota Statutes, section
120B.31, subdivision 3, must convene and facilitate an advisory group that includes
measurement experts selected by the State Council on Measurement in Education,
three regionally diverse school district research and evaluation directors selected by the
Minnesota Assessment Group, one school superintendent selected by the Minnesota
Association of School Administrators, one high school principal selected by the Minnesota
Board of School Administrators, one University of Minnesota faculty member selected
by the dean of the College of Education and Human Development, one licensed math
teacher and one licensed science teacher selected by Education Minnesota, the director of
evaluation and testing at the Minnesota Department of Education, two parents of currently
enrolled high school students selected by the Minnesota Parent Teacher Association,
one representative of the business community selected by the Minnesota Chamber of
Commerce, one representative of the business community selected by the Minnesota
Business Partnership, one representative of Minnesota's two-year postsecondary
institutions selected by Minnesota State Colleges and Universities, one representative of
Minnesota's four-year postsecondary institutions selected by the University of Minnesota,
an interested member of the public, and mathematicians, scientists, and workforce
development experts that the Office of Educational Accountability selects to consider and
recommend how best to motivate students and improve students' academic achievement in
the context of high stakes math and science exams required for high school graduation.
The advisory group at least must evaluate and make recommendations on:
 new text end

new text begin (1) particular kinds of math and science exams that Minnesota might use as high
stakes exams to award or deny students a high school diploma;
 new text end

new text begin (2) appropriate levels of high school math and science proficiency and the
educational support to help students achieve those proficiency levels;
 new text end

new text begin (3) the relationship between math and science proficiency levels and state definitions
of college and career readiness;
 new text end

new text begin (4) the interrelationship between requiring students to demonstrate math and science
proficiency and college or career readiness, and awarding or denying students a high
school diploma;
 new text end

new text begin (5) the interrelationship between high stakes testing and other coursework and
credits required for graduation or college and career readiness; and
 new text end

new text begin (6) appropriate accommodations for students with individualized education plans
and students with limited English proficiency in some circumstances.
 new text end

new text begin (b) The advisory group under paragraph (a) is not subject to Minnesota Statutes,
section 15.059. The Office of Educational Accountability must present the advisory
group's evaluation and recommendations under paragraph (a) to the education policy
and finance committees of the legislature by February 15, 2010. The advisory group
expires on June 1, 2010.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 66. new text begin LEGISLATIVE REPORT ON DISTRICTS' USE OF AND NEED FOR
INTEGRATION REVENUE.
new text end

new text begin The commissioner must analyze the substance of school district integration plans
under Minnesota Statutes, section 124D.86, subdivision 1b, to identify the elements of
and trends in district strategies and programs, the amount of success districts achieved
in realizing the specific goals contained in their plans, and the estimated funds districts
need to fully implement those plans. The commissioner must include in the analysis the
impact of demographic changes experienced at school sites and school districts involving
students of color, students with limited English proficiency, and students who are homeless
or highly mobile, as well as changes in immigration patterns and housing patterns
experienced by schools and districts, and the availability of and districts' participation in
interdistrict integration opportunities. The commissioner must submit a report on the
substance of the analysis and any resulting recommendations to the K-12 education policy
and finance committees of the legislature by February 1, 2011.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 67. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

new text begin The sums indicated in this section are
appropriated from the general fund to the Department of Education for the fiscal years
designated.
 new text end

new text begin Subd. 2. new text end

new text begin Charter school building lease aid. new text end

new text begin For building lease aid under Minnesota
Statutes, section 124D.11, subdivision 4:
new text end

new text begin $
 new text end 		new text begin 33,512,000
 new text end 		new text begin .....
 new text end 		new text begin 2010
 new text end
new text begin $
 new text end 		new text begin 44,030,000
 new text end 		new text begin .....
 new text end 		new text begin 2011
 new text end

new text begin The 2010 appropriation includes $3,704,000 for 2009 and $29,808,000 for 2010.
 new text end

new text begin The 2011 appropriation includes $11,024,000 for 2010 and $33,006,000 for 2011.
 new text end

new text begin Subd. 3. new text end

new text begin Charter school startup aid. new text end

new text begin For charter school startup cost aid under
Minnesota Statutes, section 124D.11:
 new text end

new text begin $
 new text end 		new text begin 1,245,000
 new text end 		new text begin .....
 new text end 		new text begin 2010
 new text end
new text begin $
 new text end 		new text begin 1,133,000
 new text end 		new text begin .....
 new text end 		new text begin 2011
 new text end

new text begin The 2010 appropriation includes $202,000 for 2009 and $1,043,000 for 2010.
 new text end

new text begin The 2011 appropriation includes $385,000 for 2010 and $748,000 for 2011.
 new text end

new text begin Subd. 4. new text end

new text begin Integration aid. new text end

new text begin For integration aid under Minnesota Statutes, section
124D.86, subdivision 5:
 new text end

new text begin $
 new text end 		new text begin 54,167,000
 new text end 		new text begin .....
 new text end 		new text begin 2010
 new text end
new text begin $
 new text end 		new text begin 65,549,000
 new text end 		new text begin .....
 new text end 		new text begin 2011
 new text end

new text begin The 2010 appropriation includes $6,110,000 for 2009 and $48,057,000 for 2010.
 new text end

new text begin The 2011 appropriation includes $17,774,000 for 2010 and $47,775,000 for 2011.
 new text end

new text begin Subd. 5. new text end

new text begin Magnet school grants. new text end

new text begin For magnet school and program grants under
Minnesota Statutes, section 124D.88:
 new text end

new text begin $
 new text end 		new text begin 750,000
 new text end 		new text begin .....
 new text end 		new text begin 2010
 new text end
new text begin $
 new text end 		new text begin 750,000
 new text end 		new text begin .....
 new text end 		new text begin 2011
 new text end

new text begin Subd. 6. new text end

new text begin Interdistrict desegregation or integration transportation grants. new text end

new text begin For
interdistrict desegregation or integration transportation grants under Minnesota Statutes,
section 124D.87:
 new text end

new text begin $
 new text end 		new text begin 14,468,000
 new text end 		new text begin .....
 new text end 		new text begin 2010
 new text end
new text begin $
 new text end 		new text begin 17,582,000
 new text end 		new text begin .....
 new text end 		new text begin 2011
 new text end

new text begin Subd. 7. new text end

new text begin Success for the future. new text end

new text begin For American Indian success for the future grants
under Minnesota Statutes, section 124D.81:
 new text end

new text begin $
 new text end 		new text begin 1,774,000
 new text end 		new text begin .....
 new text end 		new text begin 2010
 new text end
new text begin $
 new text end 		new text begin 2,137,000
 new text end 		new text begin .....
 new text end 		new text begin 2011
 new text end

new text begin The 2010 appropriation includes $213,000 for 2009 and $1,561,000 for 2010.
 new text end

new text begin The 2011 appropriation includes $576,000 for 2010 and $1,561,000 for 2011.
 new text end

new text begin Subd. 8. new text end

new text begin American Indian teacher preparation grants. new text end

new text begin For joint grants to assist
American Indian people to become teachers under Minnesota Statutes, section 122A.63:
 new text end

new text begin $
 new text end 		new text begin 190,000
 new text end 		new text begin .....
 new text end 		new text begin 2010
 new text end
new text begin $
 new text end 		new text begin 190,000
 new text end 		new text begin .....
 new text end 		new text begin 2011
 new text end

new text begin Subd. 9. new text end

new text begin Tribal contract schools. new text end

new text begin For tribal contract school aid under Minnesota
Statutes, section 124D.83:
 new text end

new text begin $
 new text end 		new text begin 1,683,000
 new text end 		new text begin .....
 new text end 		new text begin 2010
 new text end
new text begin $
 new text end 		new text begin 2,179,000
 new text end 		new text begin .....
 new text end 		new text begin 2011
 new text end

new text begin The 2010 appropriation includes $191,000 for 2009 and $1,492,000 for 2010.
 new text end

new text begin The 2011 appropriation includes $551,000 for 2010 and $1,628,000 for 2011.
 new text end

new text begin Subd. 10. new text end

new text begin Early childhood programs at tribal schools. new text end

new text begin For early childhood
family education programs at tribal contract schools under Minnesota Statutes, section
124D.83, subdivision 4:
 new text end

new text begin $
 new text end 		new text begin 68,000
 new text end 		new text begin .....
 new text end 		new text begin 2010
 new text end
new text begin $
 new text end 		new text begin 68,000
 new text end 		new text begin .....
 new text end 		new text begin 2011
 new text end

new text begin Subd. 11. new text end

new text begin Statewide testing and reporting system. new text end

new text begin For the statewide testing and
reporting system under Minnesota Statutes, section 120B.30:
 new text end

new text begin $
 new text end 		new text begin 15,150,000
 new text end 		new text begin .....
 new text end 		new text begin 2010
 new text end
new text begin $
 new text end 		new text begin 15,150,000
 new text end 		new text begin .....
 new text end 		new text begin 2011
 new text end

new text begin $1,150,000 each year is for the value-added index assessment model.
 new text end

new text begin Any balance in the first year does not cancel but is available in the second year.
 new text end

new text begin Subd. 12. new text end

new text begin Examination fees; teacher training and support programs. new text end

new text begin (a) For
students' advanced placement and international baccalaureate examination fees under
Minnesota Statutes, section 120B.13, subdivision 3, and the training and related costs
for teachers and other interested educators under Minnesota Statutes, section 120B.13,
subdivision 1:
 new text end

new text begin $
 new text end 		new text begin 4,500,000
 new text end 		new text begin .....
 new text end 		new text begin 2010
 new text end
new text begin $
 new text end 		new text begin 4,500,000
 new text end 		new text begin .....
 new text end 		new text begin 2011
 new text end

new text begin (b) The advanced placement program shall receive 75 percent of the appropriation
each year and the international baccalaureate program shall receive 25 percent of the
appropriation each year. The department, in consultation with representatives of the
advanced placement and international baccalaureate programs selected by the Advanced
Placement Advisory Council and IBMN, respectively, shall determine the amounts of
the expenditures each year for examination fees and training and support programs for
each program.
 new text end

new text begin (c) Notwithstanding Minnesota Statutes, section 120B.13, subdivision 1, at least
$500,000 each year is for teachers to attend subject matter summer training programs
and follow-up support workshops approved by the advanced placement or international
baccalaureate programs. The commissioner shall determine the payment process and
the amount of the subsidy.
 new text end

new text begin (d) The commissioner shall pay all examination fees for all students of low-income
families under Minnesota Statutes, section 120B.13, subdivision 3, and to the extent
of available appropriations shall also pay examination fees for students sitting for an
advanced placement examination, international baccalaureate examination, or both.
 new text end

new text begin Any balance in the first year does not cancel but is available in the second year.
 new text end

new text begin Subd. 13. new text end

new text begin Concurrent enrollment programs. new text end

new text begin For concurrent enrollment programs
under Minnesota Statutes, section 120B.132, and concurrent enrollment teacher training
under Minnesota Statutes, section 120B.13, subdivision 1:
 new text end

new text begin $
 new text end 		new text begin 2,000,000
 new text end 		new text begin .....
 new text end 		new text begin 2010
 new text end
new text begin $
 new text end 		new text begin 2,000,000
 new text end 		new text begin .....
 new text end 		new text begin 2011
 new text end

new text begin Any balance in the first year does not cancel but is available in the second year.
 new text end

new text begin Subd. 14. new text end

new text begin Collaborative urban educator. new text end

new text begin For the collaborative urban educator
grant program:
 new text end

new text begin $
 new text end 		new text begin 528,000
 new text end 		new text begin .....
 new text end 		new text begin 2010
 new text end
new text begin $
 new text end 		new text begin 528,000
 new text end 		new text begin .....
 new text end 		new text begin 2011
 new text end

new text begin Any balance in the first year does not cancel but is available in the second year.
 new text end

new text begin Subd. 15. new text end

new text begin Youth works program. new text end

new text begin For funding youth works programs under
Minnesota Statutes, sections 124D.37 to 124D.45:
 new text end

new text begin $
 new text end 		new text begin 900,000
 new text end 		new text begin .....
 new text end 		new text begin 2010
 new text end
new text begin $
 new text end 		new text begin 900,000
 new text end 		new text begin .....
 new text end 		new text begin 2011
 new text end

new text begin A grantee organization may provide health and child care coverage to the dependents
of each participant enrolled in a full-time youth works program to the extent such coverage
is not otherwise available.
 new text end

new text begin Subd. 16. new text end

new text begin Student organizations. new text end

new text begin For student organizations:
 new text end

new text begin $
 new text end 		new text begin 725,000
 new text end 		new text begin .....
 new text end 		new text begin 2010
 new text end
new text begin $
 new text end 		new text begin 725,000
 new text end 		new text begin .....
 new text end 		new text begin 2011
 new text end

new text begin $40,000 each year is for student organizations serving health occupations.
 new text end

new text begin $38,000 each year is for student organizations serving service occupations.
 new text end

new text begin $88,000 each year is for student organizations serving trade and industry occupations.
 new text end

new text begin $84,000 each year is for student organizations serving business occupations.
 new text end

new text begin $131,000 each year is for student organizations serving agriculture occupations.
 new text end

new text begin $125,000 each year is for student organizations serving family and consumer science
occupations.
 new text end

new text begin $95,000 each year is for student organizations serving marketing occupations.
 new text end

new text begin Any balance in the first year does not cancel but is available in the second year.
 new text end

new text begin Subd. 17. new text end

new text begin Education Planning and Assessment System (EPAS) program. new text end

new text begin For
the Educational Planning and Assessment System (EPAS) program under Minnesota
Statutes, section 120B.128:
 new text end

new text begin $
 new text end 		new text begin 829,000
 new text end 		new text begin .....
 new text end 		new text begin 2010
 new text end
new text begin $
 new text end 		new text begin 829,000
 new text end 		new text begin .....
 new text end 		new text begin 2011
 new text end

new text begin Any balance in the first year does not cancel but is available in the second year.
 new text end

new text begin Subd. 18. new text end

new text begin Early childhood literacy programs. new text end

new text begin For early childhood literacy
programs under Minnesota Statutes, section 124D.42:
 new text end

new text begin $
 new text end 		new text begin 1,000,000
 new text end 		new text begin .....
 new text end 		new text begin 2010
 new text end
new text begin $
 new text end 		new text begin 1,000,000
 new text end 		new text begin .....
 new text end 		new text begin 2011
 new text end

new text begin $1,000,000 each year is for leveraging federal and private funding to support
AmeriCorps members serving in the Minnesota Reading Corps program established by
Serve Minnesota, including costs associated with the training and teaching of early literacy
skills to children age three to grade 3 and the evaluation of the impact of the program
under Minnesota Statutes, sections 124D.38, subdivision 2, and 124D.42.
 new text end

new text begin Any balance in the first year does not cancel but is available in the second year.
 new text end

Sec. 68. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2008, sections 120B.362; 120B.39; 122A.628; 122A.75; and
124D.091, new text end new text begin are repealed.
 new text end

ARTICLE 3

SPECIAL PROGRAMS

Section 1.

Minnesota Statutes 2008, section 121A.41, subdivision 7, is amended to
read:


Subd. 7.

Pupil.

new text begin (a) new text end "Pupil" means any student:

(1) without a disability under 21 years deleted text begin of agedeleted text end new text begin oldnew text end ; or

(2) with a disability deleted text begin until September 1 after the child with a disability becomes 22
years of agedeleted text end new text begin under 21 years old who has not received a regular high school diploma or
for a child with a disability who becomes 21 years old during the school year but has not
received a regular high school diploma, until the end of that school yearnew text end ;

(3) and who remains eligible to attend a public elementary or secondary school.

new text begin (b) A "student with a disability" or a "pupil with a disability" has the same meaning
as a "child with a disability" under section 125A.02.
 new text end

Sec. 2.

Minnesota Statutes 2008, section 121A.41, subdivision 10, is amended to read:


Subd. 10.

Suspension.

"Suspension" means an action by the school administration,
under rules promulgated by the school board, prohibiting a pupil from attending school
for a period of no more than ten school days. If a suspension is longer than five days,
the suspending administrator must provide the superintendent with a reason for the
longer suspension. This definition does not apply to dismissal from school for one school
day or less, except as provided in federal law for a student with a disability. Each
suspension action may include a readmission plan. The readmission plan shall include,
where appropriate, a provision for implementing alternative educational services upon
readmission and may not be used to extend the current suspension. Consistent with section
125A.091, subdivision 5, the readmission plan must not obligate a parent to provide a
sympathomimetic medication for the parent's child as a condition of readmission. The
school administration may not impose consecutive suspensions against the same pupil
for the same course of conduct, or incident of misconduct, except where the pupil will
create an immediate and substantial danger to self or to surrounding persons or property,
or where the district is in the process of initiating an expulsion, in which case the school
administration may extend the suspension to a total of 15 new text begin school new text end days. deleted text begin In the case
of a student with a disability, the student's individual education plan team must meet
immediately but not more than ten school days after the date on which the decision to
remove the student from the student's current education placement is made. The individual
education plan team and other qualified personnel shall at that meeting: conduct a review
of the relationship between the child's disability and the behavior subject to disciplinary
action; and determine the appropriateness of the child's education plan.
deleted text end

deleted text begin The requirements of the individual education plan team meeting apply when:
 deleted text end

deleted text begin (1) the parent requests a meeting;
 deleted text end

deleted text begin (2) the student is removed from the student's current placement for five or more
consecutive days; or
 deleted text end

deleted text begin (3) the student's total days of removal from the student's placement during the
school year exceed ten cumulative days in a school year. The school administration shall
implement alternative educational services when the suspension exceeds five days. A
separate administrative conference is required for each period of suspension.
 deleted text end

Sec. 3.

Minnesota Statutes 2008, section 121A.43, is amended to read:


121A.43 EXCLUSION AND EXPULSION OF PUPILS WITH A DISABILITY.

new text begin (a) Consistent with federal law governing days of removal and section 121A.46,
school personnel may suspend a child with a disability. When a child with a disability
has been suspended for more than five consecutive school days or ten cumulative school
days in the same school year, and that suspension does not involve a recommendation
for expulsion or exclusion or other change of placement under federal law, relevant
members of the child's individualized education program team, including at least one of
the child's teachers, shall meet and determine the extent the child needs services in order
to continue to participate in the general education curriculum, although in another setting,
and to progress toward meeting the goals in the child's individualized education program.
That meeting must occur as soon as possible, but no more than ten days after the sixth
consecutive day of suspension or the tenth cumulative day of suspension has elapsed.
 new text end

new text begin (b) A dismissal for one school day or less is a day of suspension if the child with a
disability does not receive regular or special education instruction during that dismissal
period. The notice requirements under section 121A.46 do not apply to a dismissal
of one day or less.
new text end

new text begin (c) A child with a disability shall be provided alternative educational services to the
extent a suspension exceeds five consecutive school days.
new text end

new text begin (d) Before initiating an expulsion or exclusion under sections 121A.40 to 121A.56,
the district, relevant members of the child's individualized education program team,
and the child's parent shall, consistent with federal law, determine whether the child's
behavior was caused by or had a direct and substantial relationship to the child's disability
and whether the child's conduct was a direct result of a failure to implement the child's
individualized education program. new text end When a deleted text begin pupildeleted text end new text begin child with a disabilitynew text end who has an
deleted text begin individualdeleted text end new text begin individualizednew text end education deleted text begin plandeleted text end new text begin programnew text end is excluded or expelled under sections
121A.40 to 121A.56 for misbehavior that is not a manifestation of the deleted text begin pupil'sdeleted text end new text begin child'snew text end
disability, the district shall continue to provide special education and related services deleted text begin after
a period of suspension, if suspension is imposed. The district shall initiate a review of
the pupil's individual education plan and conduct a review of the relationship between
the pupil's disability and the behavior subject to disciplinary action and determine
the appropriateness of the pupil's education plan before commencing an expulsion or
exclusiondeleted text end new text begin during the exclusion or expulsionnew text end .

Sec. 4.

Minnesota Statutes 2008, section 122A.31, subdivision 4, is amended to read:


Subd. 4.

Reimbursement.

(a) For purposes of revenue under section deleted text begin 125A.78deleted text end new text begin
125A.76new text end , the Department of Education must only reimburse school districts for the
services of those interpreters/transliterators who satisfy the standards of competency
under this section.

(b) Notwithstanding paragraph (a), a district shall be reimbursed for the services
of interpreters with a nonrenewable provisional certificate, interpreters/transliterators
employed to mentor the provisional certified interpreters, and persons for whom a
time-limited extension has been granted under subdivision 1, paragraph (d), or subdivision
2, paragraph (c).

Sec. 5.

Minnesota Statutes 2008, section 125A.02, is amended to read:


125A.02 CHILD WITH A DISABILITY DEFINED.

Subdivision 1.

Child with a disability.

deleted text begin Every child who hasdeleted text end new text begin "Child with a
disability" means a child identified under federal and state special education law as
havingnew text end a hearing impairment, blindness, visual disability, speech or language impairment,
physical disability, other health impairment, mental disability, emotional/behavioral
disorder, specific learning disability, autism, traumatic brain injury, multiple disabilities, or
deaf/blind disability deleted text begin anddeleted text end new text begin whonew text end needs special deleted text begin instruction anddeleted text end new text begin education and relatednew text end services,
as determined by the deleted text begin standardsdeleted text end new text begin rulesnew text end of the commissioner, is a child with a disability. A
licensed physician, an advanced practice nurse, or a licensed psychologist is qualified
to make a diagnosis and determination of attention deficit disorder or attention deficit
hyperactivity disorder for purposes of identifying a child with a disability.

new text begin Subd. 1a. new text end

new text begin Children ages three through seven experiencing developmental
delays. new text end

In addition, every child under age three, and at local district discretion from age
three to age seven, who needs special instruction and services, as determined by the
deleted text begin standardsdeleted text end new text begin rulesnew text end of the commissioner, because the child has a substantial delay or has
an identifiable physical or mental condition known to hinder normal development is
a child with a disability.

Subd. 2.

Not a child with a disability.

A child with a short-term or temporary
physical or emotional illness or disability, as determined by the deleted text begin standardsdeleted text end new text begin rulesnew text end of the
commissioner, is not a child with a disability.

Sec. 6.

new text begin [125A.031] GENERAL SCHOOL DISTRICT OBLIGATIONS TO
CHILDREN WITH DISABILITIES.
 new text end

new text begin (a) Except as specifically provided in other law, the following requirements
governing school district obligations to children with disabilities apply.
 new text end

new text begin (b) A resident school district must identify, locate, and evaluate every child with
a disability who is in need of special education and related services, including a child
from birth to age 3.
 new text end

new text begin (c) A resident school district must make available a free appropriate public education
to:
 new text end

new text begin (1) a child with a disability under 21 years old who has not received a regular high
school diploma; and
 new text end

new text begin (2) for the duration of the school year, a child with a disability who becomes 21
years old during that school year but has not received a regular high school diploma.
 new text end

new text begin (d) The resident school district must ensure that a child with a disability who is
enrolled in a nonpublic school or facility receives special education and related services,
consistent with the child's individualized education program, at no cost to the child's parent
if the district places the child in the nonpublic school or facility to meet the requirements
of this section or applicable federal law.
 new text end

new text begin (e) Consistent with the number of children with disabilities who are enrolled by their
parents in a nonpublic school or facility located within a district, the district in which the
nonpublic school or facility is located must ensure that those children have an opportunity
to participate in special education and related services and that the amount the district
spends to provide such services must be at least equal to the proportionate amount of
federal funds made available under this chapter.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 7.

Minnesota Statutes 2008, section 125A.07, is amended to read:


125A.07 deleted text begin RULES OF COMMISSIONERdeleted text end new text begin RULEMAKINGnew text end .

(a) deleted text begin As defined indeleted text end new text begin Consistent withnew text end this deleted text begin paragraphdeleted text end new text begin sectionnew text end , the commissioner deleted text begin mustdeleted text end new text begin
shallnew text end adopt new text begin new rules and amend existing new text end rules deleted text begin relative to qualifications of essential
personnel, courses of study, methods of instruction, pupil eligibility, size of classes, rooms,
equipment, supervision, parent consultation, and other necessary rules for instruction of
children with a disability. These rules must provide standards and procedures appropriate
for the implementation of and within the limitations of sections 125A.08 and 125A.091.
These rules must also provide standards for the discipline, control, management, and
protection of children with a disability. The commissioner must not adopt rules for pupils
served primarily in the regular classroom establishing either case loads or the maximum
number of pupils that may be assigned to special education teachers. The commissioner, in
consultation with the Departments of Health and Human Services, must adopt permanent
rules for instruction and services for children under age five and their families. These
rules are binding on state and local education, health, and human services agencies. The
commissioner must adopt rules to determine eligibility for special education services. The
rules must include procedures and standards by which to grant variances for experimental
eligibility criteria. The commissioner must, according to section 14.05, subdivision 4,
notify a district applying for a variance from the rules within 45 calendar days of receiving
the request whether the request for the variance has been granted or denied. If a request is
denied, the commissioner must specify the program standards used to evaluate the request
and the reasons for denying the requestdeleted text end new text begin related to children with disabilities only under
specific authority and consistent with the requirements of chapter 14 and paragraph (c)new text end .

(b) As provided in this paragraph, the state's regulatory scheme should support
schools by assuring that all state special education rules adopted by the commissioner
result in one or more of the following outcomes:

(1) increased time available to teachers and, where appropriate, to support staff
including school nurses for educating students through direct and indirect instruction;

(2) consistent and uniform access to effective education programs for students with
disabilities throughout the state;

(3) reduced inequalities and conflict, appropriate due process hearing procedures
and reduced court actions related to the delivery of special education instruction and
services for students with disabilities;

(4) clear expectations for service providers and for students with disabilities;

(5) increased accountability for all individuals and agencies that provide instruction
and other services to students with disabilities;

(6) greater focus for the state and local resources dedicated to educating students
with disabilities; and

(7) clearer standards for evaluating the effectiveness of education and support
services for students with disabilities.

new text begin (c) Subject to chapter 14, the commissioner may adopt, amend, or rescind a rule
related to children with disabilities if such action is specifically required by federal law.
 new text end

Sec. 8.

Minnesota Statutes 2008, section 125A.08, is amended to read:


125A.08 deleted text begin SCHOOL DISTRICT OBLIGATIONSdeleted text end new text begin INDIVIDUALIZED
EDUCATION PROGRAMSnew text end .

(a) new text begin At the beginning of each school year, each school district shall have in effect, for
each child with a disability, an individualized education program.
new text end

new text begin (b) new text end As defined in this section, every district must ensure the following:

(1) all students with disabilities are provided the special instruction and services
which are appropriate to their needs. Where the individual education plan team has
determined appropriate goals and objectives based on the student's needs, including the
extent to which the student can be included in the least restrictive environment, and Where
there are essentially equivalent and effective instruction, related services, or assistive
technology devices available to meet the student's needs, cost to the district may be among
the factors considered by the team in choosing how to provide the appropriate services,
instruction, or devices that are to be made part of the student's individual education plan.
The individual education plan team shall consider and may authorize services covered
by medical assistance according to section 256B.0625, subdivision 26. The student's
needs and the special education instruction and services to be provided must be agreed
upon through the development of an individual education plan. The plan must address
the student's need to develop skills to live and work as independently as possible within
the community. The individual education plan team must consider positive behavioral
interventions, strategies, and supports that address behavior for children with attention
deficit disorder or attention deficit hyperactivity disorder. deleted text begin Bydeleted text end new text begin Duringnew text end grade 9 deleted text begin or age 14deleted text end ,
the plan must address the student's needs for transition from secondary services to
postsecondary education and training, employment, community participation, recreation,
and leisure and home living. In developing the plan, districts must inform parents of the
full range of transitional goals and related services that should be considered. The plan
must include a statement of the needed transition services, including a statement of the
interagency responsibilities or linkages or both before secondary services are concluded;

(2) children with a disability under age five and their families are provided special
instruction and services appropriate to the child's level of functioning and needs;

(3) children with a disability and their parents or guardians are guaranteed procedural
safeguards and the right to participate in decisions involving identification, assessment
including assistive technology assessment, and educational placement of children with a
disability;

(4) eligibility and needs of children with a disability are determined by an initial
assessment or reassessment, which may be completed using existing data under United
States Code, title 20, section 33, et seq.;

(5) to the maximum extent appropriate, children with a disability, including those
in public or private institutions or other care facilities, are educated with children who
are not disabled, and that special classes, separate schooling, or other removal of children
with a disability from the regular educational environment occurs only when and to the
extent that the nature or severity of the disability is such that education in regular classes
with the use of supplementary services cannot be achieved satisfactorily;

(6) in accordance with recognized professional standards, testing and evaluation
materials, and procedures used for the purposes of classification and placement of children
with a disability are selected and administered so as not to be racially or culturally
discriminatory; and

(7) the rights of the child are protected when the parents or guardians are not known
or not available, or the child is a ward of the state.

deleted text begin (b)deleted text end new text begin (c)new text end For paraprofessionals employed to work in programs for students with
disabilities, the school board in each district shall ensure that:

(1) before or immediately upon employment, each paraprofessional develops
sufficient knowledge and skills in emergency procedures, building orientation, roles and
responsibilities, confidentiality, vulnerability, and reportability, among other things, to
begin meeting the needs of the students with whom the paraprofessional works;

(2) annual training opportunities are available to enable the paraprofessional to
continue to further develop the knowledge and skills that are specific to the students with
whom the paraprofessional works, including understanding disabilities, following lesson
plans, and implementing follow-up instructional procedures and activities; and

(3) a districtwide process obligates each paraprofessional to work under the ongoing
direction of a licensed teacher and, where appropriate and possible, the supervision of a
school nurse.

Sec. 9.

Minnesota Statutes 2008, section 125A.091, is amended to read:


125A.091 ALTERNATIVE DISPUTE RESOLUTION AND DUE PROCESS
HEARINGS.

deleted text begin Subdivision 1. deleted text end

deleted text begin District obligation. deleted text end

deleted text begin A school district must use the procedures in
federal law and state law and rule to reach decisions about the identification, evaluation,
educational placement, manifestation determination, interim alternative educational
placement, or the provision of a free appropriate public education to a child with a
disability.
 deleted text end

deleted text begin Subd. 2. deleted text end

deleted text begin Prior written notice. deleted text end

deleted text begin A parent must receive prior written notice
a reasonable time before the district proposes or refuses to initiate or change the
identification, evaluation, educational placement, or the provision of a free appropriate
public education to a child with a disability.
 deleted text end

deleted text begin Subd. 3. deleted text end

deleted text begin Content of notice. deleted text end

deleted text begin The notice under subdivision 2 must:
 deleted text end

deleted text begin (1) describe the action the district proposes or refuses;
 deleted text end

deleted text begin (2) explain why the district proposes or refuses to take the action;
 deleted text end

deleted text begin (3) describe any other option the district considered and the reason why it rejected
the option;
 deleted text end

deleted text begin (4) describe each evaluation procedure, test, record, or report the district used as a
basis for the proposed or refused action;
 deleted text end

deleted text begin (5) describe any other factor affecting the proposal or refusal of the district to take
the action;
 deleted text end

deleted text begin (6) state that the parent of a child with a disability is protected by procedural
safeguards and, if this notice is not an initial referral for evaluation, how a parent can get a
description of the procedural safeguards; and
 deleted text end

deleted text begin (7) identify where a parent can get help in understanding this law.
 deleted text end

new text begin Subd. 3a. new text end

new text begin Additional requirements for prior written notice. new text end

new text begin In addition to federal
law requirements, a prior written notice shall:
 new text end

new text begin (1) inform the parent that except for the initial placement of a child in special
education, the school district will proceed with its proposal for the child's placement or
for providing special education services unless the child's parent notifies the district of
an objection within 14 days of when the district sends the prior written notice to the
parent; and
 new text end

new text begin (2) state that a parent who objects to a proposal or refusal in the prior written notice
may request a conciliation conference under subdivision 7 or another alternative dispute
resolution procedure under subdivision 8 or 9.
 new text end

deleted text begin Subd. 4. deleted text end

deleted text begin Understandable notice. deleted text end

deleted text begin (a) The written notice under subdivision 2 must
be understandable to the general public and available in the parent's native language or by
another communication form, unless it is clearly not feasible to do so.
 deleted text end

deleted text begin (b) If the parent's native language or other communication form is not written,
the district must take steps to ensure that:
 deleted text end

deleted text begin (1) the notice is translated orally or by other means to the parent in the parent's
native language or other communication form;
 deleted text end

deleted text begin (2) the parent understands the notice; and
 deleted text end

deleted text begin (3) written evidence indicates the requirements in subdivision 2 are met.
 deleted text end

Subd. 5.

Initial action; parent consent.

(a) The district must not proceed with the
initial evaluation of a child, the initial placement of a child in a special education program,
or the initial provision of special education services for a child without the prior written
consent of the child's parent. A district may not override the written refusal of a parent to
consent to an initial evaluation or reevaluation.

(b) A parent, after consulting with health care, education, or other professional
providers, may agree or disagree to provide the parent's child with sympathomimetic
medications unless section 144.344 applies.

Subd. 6.

Dispute resolution processes; generally.

Parties are encouraged to
resolve disputes over the identification, evaluation, educational placement, manifestation
determination, interim alternative educational placement, or the provision of a free
appropriate public education to a child with a disability through conciliation, mediation,
facilitated team meetings, or other alternative process. All dispute resolution options are
voluntary on the part of the parent and must not be used to deny or delay the right to a
due process hearing. All dispute resolution processes under this section are provided
at no cost to the parent.

Subd. 7.

Conciliation conference.

A parent must have an opportunity to meet
with appropriate district staff in at least one conciliation conference if the parent objects
to any proposal of which the parent receives notice under subdivision deleted text begin 2deleted text end new text begin 3anew text end . deleted text begin If the parent
refuses district efforts to conciliate the dispute, the conciliation requirement is satisfied.
Following a conciliation conferencedeleted text end new text begin A district must hold a conciliation conference within
ten calendar days from the date the district receives a parent's objection to a proposal or
refusal in the prior written notice. Except as provided in this section, all discussions held
during a conciliation conference are confidential and are not admissible in a due process
hearing. Within five school days after the final conciliation conferencenew text end , the district must
prepare and provide to the parent a conciliation conference memorandum that describes
the district's final proposed offer of service. This memorandum is admissible in evidence
in any subsequent proceeding.

Subd. 8.

Voluntary dispute resolution options.

In addition to offering at least
one conciliation conference, a district must inform a parent of other dispute resolution
processes, including at least mediation and facilitated team meetings. The fact that
an alternative dispute resolution process was used is admissible in evidence at any
subsequent proceeding. State-provided mediators and team meeting facilitators shall not
be subpoenaed to testify at a due process hearing or civil action under federal special
education law nor are any records of mediators or state-provided team meeting facilitators
accessible to the parties.

Subd. 9.

Mediation.

Mediation is a dispute resolution process that involves a
neutral party provided by the state to assist a parent and a district in resolving disputes
over the identification, evaluation, educational placement, manifestation determination,
interim alternative educational placement, or the provision of a free appropriate public
education to a child with a disability. A mediation process is available as an informal
alternative to a due process hearing but must not be used to deny or postpone the
opportunity of a parent or district to obtain a due process hearing. Mediation is voluntary
for all parties. All mediation discussions are confidential and inadmissible in evidence
in any subsequent proceeding, unless the:

(1) parties expressly agree otherwise;

(2) evidence is otherwise available; or

(3) evidence is offered to prove bias or prejudice of a witness.

Subd. 10.

Mediated agreements.

deleted text begin Mediated agreements are not admissible unless
the parties agree otherwise or a party to the agreement believes the agreement is not being
implemented, in which case the aggrieved party may enter the agreement into evidence at
a due process hearing. The parties may request another mediation to resolve a dispute over
implementing the mediated agreement. After a due process hearing is requested, a party
may request mediation and the commissioner must provide a mediator who conducts a
mediation session no later than the third business day after the mediation request is made
to the commissioner. deleted text end new text begin If the parties resolve all or a portion of the dispute, or agree to use
another procedure to resolve the dispute, the mediator shall ensure that the resolution
or agreement is in writing and signed by the parties and each party is given a copy of
the document. The written resolution or agreement shall state that all discussions that
occurred during mediation are confidential and may not be used as evidence in any hearing
or civil proceeding. The resolution or agreement is legally binding upon the parties and is
enforceable in the state or federal district court. A party may request another mediation to
resolve a dispute over implementing the mediated agreement.
 new text end

Subd. 11.

Facilitated team meeting.

A facilitated team meeting is an IEP, IFSP,
or IIIP team meeting led by an impartial state-provided facilitator to promote effective
communication and assist a team in developing an individualized education plan.

Subd. 12.

Impartial due process hearing.

deleted text begin (a)deleted text end A parent or a district is entitled to
an impartial due process hearing conducted by the state when a dispute arises over the
identification, evaluation, educational placement, manifestation determination, interim
alternative educational placement, or the provision of a free appropriate public education
to a child with a disability. The hearing must be held in the district responsible for
ensuring that a free appropriate public education is provided according to state and federal
law. The proceedings must be recorded and preserved, at state expense, pending ultimate
disposition of the action.new text begin The parent and the district shall receive, at state expense, a copy
of the hearing transcript or recording and the hearing officer's findings of fact, conclusion
of law, and decisions.
new text end

deleted text begin (b) The due process hearing must be conducted according to the rules of the
commissioner and federal law.
 deleted text end

Subd. 13.

Hearing officer qualifications.

deleted text begin The commissioner must appoint an
individual who is qualified under this subdivision to serve as a hearing officer.deleted text end new text begin The
commissioner shall maintain a list of qualified hearing officers who are not employees of
or otherwise under contract with the department or the school district except when under
contract with the department as a hearing officer, and who do not have a personal or
professional interest that conflicts with their objectivity when serving as hearing officers
in hearings under this section. The list shall include a statement of the qualifications of
each person listed. A hearing officer must know and understand state and federal special
education laws, rules, and regulations, and legal interpretations by federal and state courts.
A hearing officer also must have the knowledge and ability to conduct hearings and render
and write decisions according to appropriate, standard legal practice. Upon receipt of a
written request for a hearing, the commissioner shall appoint a hearing officer from the
list.new text end The hearing officer must:

(1) be knowledgeable and impartial;

(2) have no personal interest in or specific involvement with the student who is a
party to the hearing;

(3) not have been employed as an administrator by the district that is a party to
the hearing;

(4) not have been involved in selecting the district administrator who is a party
to the hearing;

(5) have no personal, economic, or professional interest in the outcome of the
hearing other than properly administering federal and state laws, rules, and policies;

(6) have no substantial involvement in developing state or local policies or
procedures challenged in the hearing;

(7) not be a current employee or board member of a Minnesota public school district,
education district, intermediate unit or regional education agency, or the department if
the department is the service provider; and

(8) not be a current employee or board member of a disability advocacy organization
or group.

Subd. 14.

Request for hearing.

deleted text begin A request for a due process hearing must:
 deleted text end

deleted text begin (1) be in writing;
 deleted text end

deleted text begin (2) describe the nature of the dispute about providing special education services to
the student including facts relating to the dispute; and
 deleted text end

deleted text begin (3) state, to the extent known, the relief sought.
 deleted text end

deleted text begin Any school district administrator receiving a request for a due process hearing
must immediately forward the request to the commissioner. Within two business days of
receiving a request for a due process hearing, the commissioner must appoint a hearing
officer. The commissioner must not deny a request for hearing because the request
is incomplete. A party may disqualify a hearing officer only by affirmatively showing
prejudice or bias to the commissioner or to the chief administrative law judge if the hearing
officer is an administrative law judge. If a party affirmatively shows prejudice against a
hearing officer, the commissioner must assign another hearing officer to hear the matter. deleted text end new text begin (a)
A parent or a school district may file a written request for a due process hearing regarding
a proposal or refusal to initiate or change that child's evaluation, individualized education
program, or educational placement, or to provide a free appropriate public education.
 new text end

new text begin (b) The parent shall include in the hearing request the name of the child, the address
of the child's residence, the name of the school the child attends, a description of the
child's problem relating to the proposed or refused initiation or change, including facts
relating to the problem, and a proposed resolution of the problem to the extent known
and available to the parents at the time.
 new text end

new text begin (c) A parent or a school district may file a written request for a hearing under United
States Code, title 20, section 1415, paragraph (k).
 new text end

new text begin (d) A parent or school district filing a request for a hearing under this subdivision
must provide the request to the other party and a copy of the request to the department.
Upon receiving a request for a hearing, the department shall give to the child's parent a
copy of the procedural safeguards notice available to a parent under federal regulations.
 new text end

new text begin (e)(1) If the parent of a child with a disability files a written request for a hearing,
and the school district has not previously sent a written notice to the parent under
subdivision 3a, regarding the subject matter of the hearing request, the school district
shall, within ten days of receiving the hearing request, send to the child's parent a written
explanation of why the school district proposed or refused to take the action raised in the
hearing request, a description of other options that the individualized education program
team considered and the reason why those options were rejected, a description of each
evaluation procedure, assessment, record, or report that the school district used as the
basis for the proposed or refused action, and a description of the factors that are relevant
to the school district's proposal or refusal. A response by a school district under this
subdivision does not preclude the school district from asserting that the parent's request
for a hearing is insufficient under clause (2).
 new text end

new text begin (2) A hearing may not occur until the party requesting the hearing files a request that
meets the requirements of paragraph (b). The request under paragraph (b) is considered
sufficient unless the party receiving the request notifies the hearing officer and the other
party in writing within 15 days of receiving the request that the receiving party believes
the request does not meet the requirements of paragraph (b). Within five days of receiving
a notice under this subdivision, the hearing officer shall determine whether the request
meets the requirements under paragraph (b) and notify the parties.
 new text end

new text begin (f) Except as provided in paragraph (e), clause (1), the party receiving a request for a
hearing shall send to the party requesting the hearing a written response that addresses the
issues raised in the hearing request within ten days of receiving the request.
 new text end

Subd. 15.

Prehearing conference.

A prehearing conference must be held within
five business days of the date the commissioner appoints the hearing officer. The hearing
officer must initiate the prehearing conference which may be conducted in person, at a
location within the district, or by telephone. The hearing officer must create a written
verbatim record of the prehearing conference which is available to either party upon
request. At the prehearing conference, the hearing officer must:

(1) identify the questions that must be answered to resolve the dispute and eliminate
claims and complaints that are without merit;

(2) set a scheduling order for the hearing and additional prehearing activities;

(3) determine if the hearing can be disposed of without an evidentiary hearing and, if
so, establish the schedule and procedure for doing so; and

(4) establish the management, control, and location of the hearing to ensure its fair,
efficient, and effective disposition.

Subd. 16.

Burden of proof.

The burden of proof at a due process hearing is on the
deleted text begin district to demonstrate, by a preponderance of the evidence, that it is complying with the
law and offered or provided a free appropriate public education to the child in the least
restrictive environment. If the district has not offered or provided a free appropriate public
education in the least restrictive environment and the parent wants the district to pay for a
private placement, the burden of proof is on the parent to demonstrate, by a preponderance
of the evidence, that the private placement is appropriatedeleted text end new text begin party seeking reliefnew text end .

Subd. 17.

Admissible evidence.

The hearing officer may admit all evidence
that possesses probative value, including hearsay, if it is the type of evidence on which
reasonable, prudent persons are accustomed to rely in conducting their serious affairs. The
hearing officer must give effect to the rules of privilege recognized by law and exclude
evidence that is incompetent, irrelevant, immaterial, or unduly repetitious.

Subd. 18.

Hearing officer authority.

(a) A hearing officer must limit an impartial
due process hearing to the time sufficient for each party to present its case.

(b) A hearing officer must establish and maintain control and manage the hearing.
This authority includes, but is not limited to:

(1) requiring attorneys representing parties at the hearing, after notice and an
opportunity to be heard, to pay court reporting and hearing officer costs, or fines payable
to the state, for failing to: (i) obey scheduling or prehearing orders, (ii) appear, (iii) be
prepared, or (iv) participate in the hearing process in good faith;

(2) administering oaths and affirmations;

(3) issuing subpoenas;

(4) determining the responsible and providing districts and joining those districts, if
not already notified, in the proceedings;

(5) making decisions involving identification, evaluation, educational placement,
manifestation determination, interim alternative educational placement, or the provision of
a free appropriate public education to a child with a disability; deleted text begin and
deleted text end

(6) ordering an independent educational evaluation of a child at district expensenew text begin ; and
new text end

new text begin (7) extending the hearing decision timeline for good cause shown.
 new text end

new text begin (c) Good cause includes, but is not limited to, the time required for mediation or
other settlement discussions, independent educational evaluation, complexity and volume
of issues, or finding or changing counselnew text end .

Subd. 19.

Expedited due process hearings.

new text begin Consistent with federal law, new text end a parent
deleted text begin has the right todeleted text end new text begin or a school district may file a written request fornew text end an expedited due process
hearing deleted text begin when there is a dispute over a manifestation determination or a proposed or actual
placement in an interim alternative educational setting. A district has the right to an
expedited due process hearing when proposing or seeking to maintain placement in an
interim alternative educational settingdeleted text end . A hearing officer must hold an expedited due
process hearing new text begin within 20 school days of the date the expedited due process request is
filed new text end and must issue a decision within ten deleted text begin calendardeleted text end new text begin schoolnew text end days deleted text begin ofdeleted text end new text begin afternew text end the deleted text begin request for adeleted text end
hearing. deleted text begin A hearing officer may extend by up to five additional calendar days the time for
issuing a decision in an expedited due process hearing. All policies in this section apply
to expedited due process hearings to the extent they do not conflict with federal law.deleted text end new text begin A
resolution meeting must occur within seven days of receiving the request for an expedited
due process hearing unless the parent and the school district agree in writing either to
waive the resolution meeting or use the mediation process. The expedited due process
hearing may proceed unless the matter has been resolved to the satisfaction of both parties
within 15 days of receiving the expedited due process hearing request.
new text end

Subd. 20.

Hearing officer's decision; time period.

(a) The hearing officer must
deleted text begin issue a decision within 45 calendar days of the date on which the commissioner receives
the request for a due process hearingdeleted text end new text begin ensure that not later than 45 days after the 30-day
period or the adjusted time periods under federal regulations expire, the hearing officer
reaches a final decision in the due process hearing and transmits a copy of the decision to
each party. A hearing officer, at the request of either party, may grant specific extensions
of time beyond the 45-day period under subdivision 18. The hearing officer must conduct
the oral arguments in a hearing at a time and place that is reasonably convenient to the
parents and child involvednew text end . A hearing officer is encouraged to accelerate the time line to
30 days for a child under the age of three whose needs change rapidly and who requires
quick resolution of a dispute. deleted text begin A hearing officer may not extend the time beyond the 45-day
period unless requested by either party for good cause shown on the record. Extensions
of time must not exceed a total of 30 calendar days unless both parties and the hearing
officer agree or time is needed to complete an independent educational evaluation. Good
cause includes, but is not limited to, the time required for mediation or other settlement
discussions, independent educational evaluation, complexity and volume of issues, or
finding or changing counsel.
deleted text end

deleted text begin (b) The hearing officer's decision must:
 deleted text end

deleted text begin (1) be in writing;
 deleted text end

deleted text begin (2) state the controlling and material facts upon which the decision is made in order
to apprise the reader of the basis and reason for the decision; and
 deleted text end

deleted text begin (3) be based on local standards, state statute, the rules of the commissioner, and
federal law.
 deleted text end

new text begin (b) Once the hearing officer has issued a final decision, the hearing officer lacks
authority to amend the decision except for clerical or mathematical errors.
 new text end

new text begin (c) Nothing in this subdivision precludes a hearing officer from ordering a school
district to comply with federal procedural safeguards under the federal Individuals with
Disabilities Education Act.
 new text end

Subd. 21.

Compensatory educational services.

The hearing officer may require
the resident or responsible district to provide compensatory educational services to the
child if the hearing officer finds that the district has not offered or made available to
the child a free appropriate public education in the least restrictive environment and the
child suffered a loss of educational benefit. Such services take the form of direct and
indirect special education and related services designed to address any loss of educational
benefit that may have occurred. The hearing officer's finding must be based on a present
determination of whether the child has suffered a loss of educational benefit.

deleted text begin Subd. 22. deleted text end

deleted text begin Child's educational placement during due process hearing. deleted text end

deleted text begin (a) Until a
due process hearing under this section is completed or the district and the parent agree
otherwise, the child must remain in the child's current educational placement and must
not be denied initial admission to school.
 deleted text end

deleted text begin (b) Until an expedited due process hearing challenging an interim alternative
educational placement is completed, the child must remain in the interim alternative
educational setting until the decision of the hearing officer or the expiration of the 45 days
permitted for an interim alternative educational setting, whichever occurs first, unless the
parent and district agree otherwise.
 deleted text end

deleted text begin Subd. 23. deleted text end

deleted text begin Implementation of hearing officer order. deleted text end

deleted text begin (a) That portion of a hearing
officer's decision granting relief requested by the parent must be implemented upon
issuance.
 deleted text end

deleted text begin (b) Except as provided under paragraph (a) or the district and parent agree otherwise,
following a hearing officer's decision granting relief requested by the district, the child
must remain in the current educational placement until the time to request judicial review
under subdivision 24 expires or, if judicial review is requested, at the time the Minnesota
Court of Appeals or the federal district court issues its decision, whichever is later.
 deleted text end

Subd. 24.

Review of hearing officer decisions.

The parent or district may seek
review of the hearing officer's decision in the Minnesota Court of Appeals or in the federal
district courtdeleted text begin , consistent with federal lawdeleted text end . A party must appeal to the Minnesota Court
of Appeals within 60 days of receiving the hearing officer's decisionnew text begin or must appeal to
federal district court within 90 days of receiving the hearing officer's decisionnew text end .

Subd. 25.

Enforcement of orders.

The commissioner must monitor final hearing
officer decisions and ensure enforcement of hearing officer deleted text begin ordersdeleted text end new text begin decisionsnew text end .

Subd. 26.

Hearing officer and person conducting alternative dispute resolution
are state employees.

A hearing officer or person conducting alternative dispute resolution
under this section is an employee of the state under section 3.732 for purposes of section
3.736 only.

Subd. 27.

Hearing officer training.

A hearing officer must participate in training
deleted text begin and follow procedures establisheddeleted text end new text begin offerednew text end by the commissioner.

Subd. 28.

District liability.

A district is not liable for harmless technical violations
of deleted text begin this section or rules implementing this sectiondeleted text end new text begin federal or state laws, rules, or regulations
governing special educationnew text end if the school district can demonstrate deleted text begin on a case-by-case basisdeleted text end
that the violations did not harm a student's educational progress or the parent's right to
notice, participation, or due process.new text begin This subdivision is applicable to due process hearings
and special education complaints filed with the department.
new text end

Sec. 10.

new text begin [125A.094] RESTRICTIVE PROCEDURES FOR CHILDREN WITH
DISABILITIES.
 new text end

new text begin The use of restrictive procedures for children with disabilities is governed by
sections 125A.0941 and 125A.0942.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2011.
 new text end

Sec. 11.

new text begin [125A.0941] DEFINITIONS.
 new text end

new text begin (a) The following terms have the meanings given them.
 new text end

new text begin (b) "Emergency" means a situation where immediate intervention is needed to protect
a child or other individual from physical injury or to prevent serious property damage.
 new text end

new text begin (c) "Physical holding" means physical intervention intended to hold a child immobile
or limit a child's movement and where body contact is the only source of physical restraint.
The term physical holding does not mean physical contact that:
 new text end

new text begin (1) helps a child respond or complete a task;
 new text end

new text begin (2) assists a child without restricting the child's movement;
 new text end

new text begin (3) is needed to administer an authorized health-related service or procedure; or
 new text end

new text begin (4) is needed to physically escort a child when the child does not resist or the child's
resistance is minimal.
 new text end

new text begin (d) "Positive behavioral interventions and supports" means interventions and
strategies to improve the school environment and teach children the skills to behave
appropriately.
 new text end

new text begin (e) "Restrictive procedures" means the use of physical holding or seclusion in an
emergency.
 new text end

new text begin (f) "Seclusion" means confining a child alone in a room from which egress is barred.
Removing a child from an activity to a location where the child cannot participate in or
observe the activity is not seclusion.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2011.
 new text end

Sec. 12.

new text begin [125A.0942] STANDARDS FOR RESTRICTIVE PROCEDURES.
 new text end

new text begin Subdivision 1. new text end

new text begin Restrictive procedures plan. new text end

new text begin Schools that intend to use restrictive
procedures shall maintain and make publicly accessible a restrictive procedures plan for
children that includes at least the following:
 new text end

new text begin (1) the list of restrictive procedures the school intends to use;
 new text end

new text begin (2) how the school will monitor and review the use of restrictive procedures,
including conducting post-use debriefings and convening an oversight committee; and
 new text end

new text begin (3) a written description and documentation of the training staff completed under
subdivision 5.
 new text end

new text begin Subd. 2. new text end

new text begin Restrictive procedures. new text end

new text begin (a) Restrictive procedures may be used only
by a licensed special education teacher, school social worker, school psychologist,
behavior analyst certified by the National Behavior Analyst Certification Board, a person
with a master's degree in behavior analysis, other licensed education professional,
paraprofessional under section 120B.363, or mental health professional under section
245.4871, subdivision 27, who has completed the training program under subdivision 5.
 new text end

new text begin (b) A school shall make reasonable efforts to notify the parent on the same day a
restrictive procedure is used on the child, or if the school is unable to provide same-day
notice, notice is sent within two days by written or electronic means or as otherwise
indicated by the child's parent under paragraph (d).
 new text end

new text begin (c) When restrictive procedures are used twice in 30 days or when a pattern emerges
and restrictive procedures are not included in a child's individualized education program or
behavior intervention plan, the district must hold a meeting of the individualized education
plan team, conduct or review a functional behavioral analysis, review data, consider
developing additional or revised positive behavioral interventions and supports, consider
actions to reduce the use of restrictive procedures, and modify the individualized education
plan or behavior intervention plan as appropriate. At the meeting, the team must review
any known medical or psychological limitations that contraindicate the use of a restrictive
procedure, consider whether to prohibit that restrictive procedure, and document any
prohibition in the individualized education program or behavior intervention plan.
 new text end

new text begin (d) An individualized education plan team may plan for using restrictive procedures
and may include these procedures in a child's individualized education program or
behavior intervention plan; however, the restrictive procedures may be used only in
response to behavior that constitutes an emergency, consistent with this section. The
individualized education program or behavior intervention plan shall indicate how the
parent wants to be notified when a restrictive procedure is used.
 new text end

new text begin Subd. 3. new text end

new text begin Physical holding or seclusion. new text end

new text begin Physical holding or seclusion may be used
only in an emergency. A school that uses physical holding or seclusion shall meet the
following requirements:
 new text end

new text begin (1) the physical holding or seclusion must be the least intrusive intervention that
effectively responds to the emergency;
 new text end

new text begin (2) physical holding or seclusion must end when the threat of harm ends and the
staff determines that the child can safely return to the classroom or activity;
 new text end

new text begin (3) staff must directly observe the child while physical holding or seclusion is being
used;
 new text end

new text begin (4) each time physical holding or seclusion is used, the staff person who implements
or oversees the physical holding or seclusion shall document, as soon as possible after the
incident concludes, the following information:
 new text end

new text begin (i) a description of the incident that led to the physical holding or seclusion;
 new text end

new text begin (ii) why a less restrictive measure failed or was determined by staff to be
inappropriate or impractical;
 new text end

new text begin (iii) the time the physical holding or seclusion began and the time the child was
released; and
 new text end

new text begin (iv) a brief record of the child's behavioral and physical status;
 new text end

new text begin (5) the room used for seclusion must:
 new text end

new text begin (i) be at least six feet by five feet;
 new text end

new text begin (ii) be well lit, well ventilated, adequately heated, and clean;
 new text end

new text begin (iii) have a window that allows staff to directly observe a child in seclusion;
 new text end

new text begin (iv) have tamperproof fixtures, electrical switches located immediately outside the
door, and secure ceilings;
 new text end

new text begin (v) have doors that open out and are unlocked, locked with keyless locks that
have immediate release mechanisms, or locked with locks that have immediate release
mechanisms connected with a fire and emergency system; and
 new text end

new text begin (vi) not contain objects that a child may use to injure the child or others; and
 new text end

new text begin (6) before using a room for seclusion, a school must:
 new text end

new text begin (i) receive written notice from local authorities that the room and the locking
mechanisms comply with applicable building, fire, and safety codes; and
 new text end

new text begin (ii) register the room with the commissioner, who may view that room.
 new text end

new text begin Subd. 4. new text end

new text begin Prohibitions. new text end

new text begin The following actions or procedures are prohibited:
 new text end

new text begin (1) engaging in conduct prohibited under section 121A.58;
 new text end

new text begin (2) requiring a child to assume and maintain a specified physical position, activity,
or posture that induces physical pain;
 new text end

new text begin (3) totally or partially restricting a child's senses as punishment;
 new text end

new text begin (4) presenting an intense sound, light, or other sensory stimuli using smell, taste,
substance, or spray as punishment;
 new text end

new text begin (5) denying or restricting a child's access to equipment and devices such as walkers,
wheelchairs, hearing aids, and communication boards that facilitate the child's functioning,
except when temporarily removing the equipment or device is needed to prevent injury
to the child or others or serious damage to the equipment or device, in which case the
equipment or device shall be returned to the child as soon as possible;
 new text end

new text begin (6) interacting with a child in a manner that constitutes sexual abuse, neglect, or
physical abuse under section 626.556;
 new text end

new text begin (7) withholding regularly scheduled meals or water;
 new text end

new text begin (8) denying access to bathroom facilities; and
 new text end

new text begin (9) physical holding that restricts or impairs a child's ability to breathe.
 new text end

new text begin Subd. 5. new text end

new text begin Training for staff. new text end

new text begin (a) To meet the requirements of subdivision 1,
staff who use restrictive procedures shall complete training in the following skills and
knowledge areas:
 new text end

new text begin (1) positive behavioral interventions;
 new text end

new text begin (2) communicative intent of behaviors;
 new text end

new text begin (3) relationship building;
 new text end

new text begin (4) alternatives to restrictive procedures, including techniques to identify events and
environmental factors that may escalate behavior;
 new text end

new text begin (5) de-escalation methods;
 new text end

new text begin (6) standards for using restrictive procedures;
 new text end

new text begin (7) obtaining emergency medical assistance;
 new text end

new text begin (8) the physiological and psychological impact of physical holding and seclusion;
 new text end

new text begin (9) monitoring and responding to a child's physical signs of distress when physical
holding is being used; and
 new text end

new text begin (10) recognizing the symptoms of and interventions that may cause positional
asphyxia when physical holding is used.
 new text end

new text begin (b) The commissioner, after consulting with the commissioner of human services,
must develop and maintain a list of training programs that satisfy the requirements of
paragraph (a). The district shall maintain records of staff who have been trained and the
organization or professional that conducted the training. The district may collaborate with
children's community mental health providers to coordinate trainings.
 new text end

new text begin Subd. 6. new text end

new text begin Behavior supports. new text end

new text begin School districts are encouraged to establish effective
schoolwide systems of positive behavior interventions and supports. Nothing in this
section or section 125A.0941 precludes the use of reasonable force under sections
121A.582; 609.06, subdivision 1; and 609.379.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2011.
 new text end

Sec. 13.

Minnesota Statutes 2008, section 125A.15, is amended to read:


125A.15 PLACEMENT IN ANOTHER DISTRICT; RESPONSIBILITY.

The responsibility for special instruction and services for a child with a disability
temporarily placed in another district for care and treatment shall be determined in the
following manner:

(a) The district of residence of a child shall be the district in which the child's parent
resides, if living, or the child's guardian, or the district designated by the commissioner if
neither parent nor guardian is living within the state.

(b) new text begin If a district other than the resident district places a pupil for care and treatment,
the district placing the pupil must notify and give the resident district an opportunity to
participate in the placement decision. When an immediate emergency placement of a
pupil is necessary and time constraints foreclose a resident district from participating in
the emergency placement decision, the district in which the pupil is temporarily placed
must notify the resident district of the emergency placement within 15 days. The resident
district has up to five business days after receiving notice of the emergency placement
to request an opportunity to participate in the placement decision, which the placing
district must then provide.
new text end

new text begin (c) new text end When a child is temporarily placed for care and treatment in a day program
located in another district and the child continues to live within the district of residence
during the care and treatment, the district of residence is responsible for providing
transportation to and from the care and treatment deleted text begin facilitydeleted text end new text begin program new text end and an appropriate
educational program for the child. new text begin The resident district may establish reasonable
restrictions on transportation, except if a Minnesota court or agency orders the child
placed at a day care and treatment program and the resident district receives a copy of
the order, then the resident district must provide transportation to and from the program
unless the court or agency orders otherwise. new text end Transportation shall only be provided by the
new text begin resident new text end district during regular operating hours of the new text begin resident new text end district. The new text begin resident new text end district
may provide the educational program at a school within the district of residence, at the
child's residence, or in the district in which the day treatment center is located by paying
tuition to that district.

deleted text begin (c)deleted text end new text begin (d)new text end When a child is temporarily placed in a residential program for care and
treatment, the nonresident district in which the child is placed is responsible for providing
an appropriate educational program for the child and necessary transportation while the
child is attending the educational program; and must bill the district of the child's residence
for the actual cost of providing the program, as outlined in section 125A.11, except as
provided in paragraph deleted text begin (d)deleted text end new text begin (e)new text end . However, the board, lodging, and treatment costs incurred
in behalf of a child with a disability placed outside of the school district of residence by
the commissioner of human services or the commissioner of corrections or their agents,
for reasons other than providing for the child's special educational needs must not become
the responsibility of either the district providing the instruction or the district of the child's
residence. For the purposes of this section, the state correctional facilities operated on a
fee-for-service basis are considered to be residential programs for care and treatment.

deleted text begin (d)deleted text end new text begin (e)new text end A privately owned and operated residential facility may enter into a contract
to obtain appropriate educational programs for special education children and services
with a joint powers entity. The entity with which the private facility contracts for special
education services shall be the district responsible for providing students placed in that
facility an appropriate educational program in place of the district in which the facility is
located. If a privately owned and operated residential facility does not enter into a contract
under this paragraph, then paragraph deleted text begin (c)deleted text end new text begin (d)new text end applies.

deleted text begin (e)deleted text end new text begin (f)new text end The district of residence shall pay tuition and other program costs, not
including transportation costs, to the district providing the instruction and services.
The district of residence may claim general education aid for the child as provided by
law. Transportation costs must be paid by the district responsible for providing the
transportation and the state must pay transportation aid to that district.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 14.

Minnesota Statutes 2008, section 125A.28, is amended to read:


125A.28 STATE INTERAGENCY COORDINATING COUNCIL.

An Interagency Coordinating Council of at least 17, but not more than 25 members
is established, in compliance with Public Law 108-446, section 641. The members
must be appointed by the governor. Council members must elect the council chair. The
representative of the commissioner may not serve as the chair. The council must be
composed of at least five parents, including persons of color, of children with disabilities
under age 12, including at least three parents of a child with a disability under age seven,
five representatives of public or private providers of services for children with disabilities
under age five, including a special education director, county social service director,
local Head Start director, and a community health services or public health nursing
administrator, one member of the senate, one member of the house of representatives, one
representative of teacher preparation programs in early childhood-special education or
other preparation programs in early childhood intervention, at least one representative of
advocacy organizations for children with disabilities under age five, one physician who
cares for young children with special health care needs, one representative each from the
commissioners of commerce, education, health, human services, a representative from the
state agency responsible for child care, foster care, mental health, homeless coordinator
of education of homeless children and youth, and a representative from Indian health
services or a tribal council. Section 15.059, subdivisions 2 to 5, apply to the council.
The council must meet at least quarterly.

The council must address methods of implementing the state policy of developing
and implementing comprehensive, coordinated, multidisciplinary interagency programs of
early intervention services for children with disabilities and their families.

The duties of the council include recommending policies to ensure a comprehensive
and coordinated system of all state and local agency services for children under age five
with disabilities and their families. The policies must address how to incorporate each
agency's services into a unified state and local system of multidisciplinary assessment
practices, individual intervention plans, comprehensive systems to find children in need of
services, methods to improve public awareness, and assistance in determining the role of
interagency early intervention committees.

On the date that Minnesota Part C Annual Performance Report is submitted to the
federal Office of Special Education, the council must recommend to the governor and the
commissioners of education, health, human services, commerce, and employment and
economic development policies for a comprehensive and coordinated system.

Notwithstanding any other law to the contrary, the State Interagency Coordinating
Council expires on June 30, deleted text begin 2009deleted text end new text begin 2014new text end .

Sec. 15.

Minnesota Statutes 2008, section 125A.51, is amended to read:


125A.51 PLACEMENT OF CHILDREN WITHOUT DISABILITIES;
EDUCATION AND TRANSPORTATION.

The responsibility for providing instruction and transportation for a pupil without a
disability who has a short-term or temporary physical or emotional illness or disability, as
determined by the standards of the commissioner, and who is temporarily placed for care
and treatment for that illness or disability, must be determined as provided in this section.

(a) The school district of residence of the pupil is the district in which the pupil's
parent or guardian resides.

(b) When parental rights have been terminated by court order, the legal residence
of a child placed in a residential or foster facility for care and treatment is the district in
which the child resides.

(c) Before the placement of a pupil for care and treatment, the district of residence
must be notified and provided an opportunity to participate in the placement decision.
When an immediate emergency placement is necessary and time does not permit
resident district participation in the placement decision, the district in which the pupil is
temporarily placed, if different from the district of residence, must notify the district
of residence of the emergency placement within 15 days of the placement.new text begin When a
nonresident district makes an emergency placement without first consulting with the
resident district, the resident district has up to five business days after receiving notice
of the emergency placement to request an opportunity to participate in the placement
decision, which the placing district must then provide.
new text end

(d) When a pupil without a disability is temporarily placed for care and treatment
in a day program and the pupil continues to live within the district of residence during
the care and treatment, the district of residence must provide instruction and necessary
transportation to and from the new text begin care and new text end treatment deleted text begin facilitydeleted text end new text begin program new text end for the pupil. new text begin The
resident district may establish reasonable restrictions on transportation, except if a
Minnesota court or agency orders the child placed at a day care and treatment program
and the resident district receives a copy of the order, then the resident district must provide
transportation to and from the program unless the court or agency orders otherwise.
new text end Transportation shall only be provided by the new text begin resident new text end district during regular operating
hours of the new text begin resident new text end district. The new text begin resident new text end district may provide the instruction at a school
within the district of residence, at the pupil's residence, or in the case of a placement
outside of the resident district, in the district in which the day treatment program is located
by paying tuition to that district. The district of placement may contract with a facility to
provide instruction by teachers licensed by the state Board of Teaching.

(e) When a pupil without a disability is temporarily placed in a residential program
for care and treatment, the district in which the pupil is placed must provide instruction
for the pupil and necessary transportation while the pupil is receiving instruction, and in
the case of a placement outside of the district of residence, the nonresident district must
bill the district of residence for the actual cost of providing the instruction for the regular
school year and for summer school, excluding transportation costs.

(f) Notwithstanding paragraph (e), if the pupil is homeless and placed in a public or
private homeless shelter, then the district that enrolls the pupil under section 127A.47,
subdivision 2, shall provide the transportation, unless the district that enrolls the pupil
and the district in which the pupil is temporarily placed agree that the district in which
the pupil is temporarily placed shall provide transportation. When a pupil without a
disability is temporarily placed in a residential program outside the district of residence,
the administrator of the court placing the pupil must send timely written notice of the
placement to the district of residence. The district of placement may contract with a
residential facility to provide instruction by teachers licensed by the state Board of
Teaching. For purposes of this section, the state correctional facilities operated on a
fee-for-service basis are considered to be residential programs for care and treatment.

(g) The district of residence must include the pupil in its residence count of pupil
units and pay tuition as provided in section 123A.488 to the district providing the
instruction. Transportation costs must be paid by the district providing the transportation
and the state must pay transportation aid to that district. For purposes of computing state
transportation aid, pupils governed by this subdivision must be included in the disabled
transportation category if the pupils cannot be transported on a regular school bus route
without special accommodations.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 16.

Minnesota Statutes 2008, section 125A.56, is amended to read:


125A.56 ALTERNATE INSTRUCTION REQUIRED BEFORE ASSESSMENT
REFERRAL.

Subdivision 1.

Requirement.

(a) Before a pupil is referred for a special education
evaluation, the district must conduct and document at least twonew text begin scientific, research-based
new text end instructional strategies, alternatives, or interventions deleted text begin using a system of scientific,
research-based instruction and interventiondeleted text end in academics or behavior, based on the pupil's
needs, deleted text begin while the pupil is in the regular classroom. The pupil's teacher mustdeleted text end new text begin andnew text end document
the results. A special education evaluation team may waive this requirement when it
determines the pupil's need for the evaluation is urgent. new text begin A district may not use new text end this section
deleted text begin may not be useddeleted text end to deny a pupil's right to a special education evaluation.

(b) A school district shall use alternative intervention services, including the
assurance of mastery program under section 124D.66, the supplemental early education
program under section 124D.081, or an early intervening services program under
subdivision 2 to serve at-risk pupils who demonstrate a need for alternative instructional
strategiesnew text begin , alternatives,new text end or interventions.

new text begin Subd. 1a. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the terms defined in this
subdivision have the meaning given them.
 new text end

new text begin (b) "Benchmark assessments" means screening that is administered at least three
times per year to pupils in kindergarten through grade 8 who are at-risk or in need of early
intervening services and may be administered to pupils in grades 9 through 12.
 new text end

new text begin (c) "Early intervening services" means providing additional academic and behavioral
support in a general education environment to pupils who have not been identified as
needing special education or related services.
 new text end

new text begin (d) "General outcome measures" means valid and reliable measures based on
monitoring of pupils' progress, including both general screening of all pupils and more
frequent progress monitoring of pupil responses to specific interventions.
 new text end

new text begin (e) "Incidental benefit" means the benefit received by a nondisabled pupil (i) who
receives academic or behavioral instruction provided by a special education teacher to
a small group of primarily pupils with disabilities to implement their individualized
education programs, (ii) who needs the support to succeed in the general education
environment, and (iii) for whom no special education staff are added to meet that
nondisabled pupil's needs.
 new text end

new text begin (f) "Progress monitoring" means a standardized, scientifically based practice using
ongoing assessments that compare expected and actual rates of learning to measure pupils'
progress towards meeting a particular goal.
 new text end

new text begin (g) "Scientific, research-based instructional strategies, alternatives, and
interventions" means instruction and intervention derived from systematically applying
rigorous and objective procedures to obtain valid and reliable knowledge about educational
activities and programs.
 new text end

Subd. 2.

Early intervening services program.

deleted text begin (a) A district may meet the
requirement under subdivision 1 by establishingdeleted text end An early intervening services program
deleted text begin thatdeleted text end includes:

(1) a deleted text begin system of valid and reliabledeleted text end new text begin screening andnew text end general outcome measures aligned
to state academic standards deleted text begin that is administered at least three times per year to pupils
in kindergarten through grade 8 who need additional academic or behavioral support
to succeed in the general education environment. The school must provide interim
assessments that measure pupils' performance three times per year and implementdeleted text end new text begin that use
valid and reliable benchmark assessments;
new text end

new text begin (2) new text end progress monitoring deleted text begin appropriate to the pupil. For purposes of this section,
"progress monitoring" means the frequent and continuous measurement of a pupil's
performance that includes these three interim assessments and other pupil assessments
during the school year. A school, at its discretion, may allow pupils in grades 9 through
12 to participate in interim assessmentsdeleted text end new text begin data that document the effectiveness of specific
interventions for each pupil and compare a pupil's performance against general outcome
measuresnew text end ;

deleted text begin (2)deleted text end new text begin (3)new text end a system of scientific, research-based deleted text begin instruction and interventiondeleted text end new text begin
instructional strategies, alternatives, and interventionsnew text end ; and

deleted text begin (3)deleted text end new text begin (4)new text end an organizational plan that allows teachers, paraprofessionals, and volunteers
funded through various sources to new text begin deliver instruction, new text end work new text begin collaboratively new text end as a grade-level
team or use another configuration across grades and settings deleted text begin to deliver instruction. The
team must be traineddeleted text end new text begin , and receive trainingnew text end in scientific, research-based instruction and
intervention. deleted text begin Teachers and paraprofessionals at a site operating under this paragraph
must work collaboratively with those pupils who need additional academic or behavioral
support to succeed in a general education environment.
deleted text end

new text begin Subd. 3. new text end

new text begin Incidental benefit. new text end

deleted text begin (b)deleted text end new text begin (a) new text end As an intervention under deleted text begin paragraph (a)deleted text end new text begin
subdivision 2new text end , clause deleted text begin (2)deleted text end new text begin (3)new text end , staff generating special education aid under section 125A.76
may provide small group instruction to pupils who need additional academic or behavioral
support to succeed in the general education environment. Small group instruction that
includes pupils with a disability may be provided in the general education environment ifnew text begin :
new text end

new text begin (1)new text end the needs of the pupils with a disability are met, consistent with their individual
education plansdeleted text begin , anddeleted text end new text begin ;
new text end

new text begin (2)new text end all pupils in the group receive the same level of instruction and make the same
progress in the instruction or interventionnew text begin ; and
new text end

new text begin (3) during each 60-day period that a nondisabled pupil participates in small group
instruction under this paragraph, the pupil's progress monitoring data are examined to
determine whether the pupil is making progress and, if the pupil is not making progress,
the pupil's intervention strategies must be changed or the pupil must be referred for
a special education evaluationnew text end .

Teachers and paraprofessionals must ensure that the needs of pupils with a disability
participating in small group instruction under this paragraph remain the focus of the
instruction. deleted text begin Expenditures attributable to the time special education staff spends providing
instruction to nondisabled pupils in this circumstance is eligible for special education aid
under section 125A.76 as an incidental benefit if:
deleted text end

deleted text begin (1) the group consists primarily of disabled pupils;
 deleted text end

deleted text begin (2) no special education staff are added to meet nondisabled pupils' needs; and
 deleted text end

deleted text begin (3) the primary purpose of the instruction is to implement the individual education
plans of pupils with a disability in this group.
 deleted text end

new text begin (b) new text end Expenditures attributable to the time special education staff spends providing
small group instruction to nondisabled pupils that affords more than an incidental benefit
to such pupils is not eligible for special education aid under section 125A.76, except
that such expenditures may be included in the alternative delivery initial aid adjustment
under section 125A.78 if the district has an approved program under section 125A.50.
deleted text begin During each 60-day period that a nondisabled pupil participates in small group instruction
under this paragraph, the pupil's progress monitoring data must be examined to determine
whether the pupil is making progress and, if the pupil is not making progress, the pupil's
intervention strategies must be changed or the pupil must be referred for a special
education evaluation.
deleted text end

Sec. 17.

Minnesota Statutes 2008, section 125A.57, subdivision 2, is amended to read:


Subd. 2.

Assistive technology device.

"Assistive technology device" means any
item, piece of equipment, software, or product system, whether acquired commercially
off the shelf, modified, or customized, that is used to increase, maintain, or improve
functional capabilities of deleted text begin children with disabilitiesdeleted text end new text begin a child with a disability. The term does
not include a surgically implanted medical device or a replacement of that devicenew text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 18.

Minnesota Statutes 2008, section 125A.63, subdivision 2, is amended to read:


Subd. 2.

Programs.

The resource centers must offer summer institutes deleted text begin and like
programsdeleted text end new text begin or other training programs new text end throughout the state for deaf or hard of hearing, blind
or visually impaired, and multiply disabled pupils. The resource centers must also offer
workshops for teachers, and leadership development for teachers.

A program offered through the resource centers must promote and develop education
programs offered by school districts or other organizations. The program must assist
school districts or other organizations to develop innovative programs.

Sec. 19.

Minnesota Statutes 2008, section 125A.63, subdivision 4, is amended to read:


Subd. 4.

Advisory committees.

The commissioner shall establish an
advisory committee for each resource center. The advisory committees shall develop
recommendations regarding the resource centers and submit an annual report to the
commissioner on the form and in the manner prescribed by the commissioner.new text begin The
advisory committee for the Resource Center for the Deaf and Hard of Hearing shall meet
at least four times a year and submit an annual report to the commissioner, the legislature,
and the Commission of Deaf, DeafBlind and Hard of Hearing Minnesotans.
new text end

new text begin The recommendations must include:
 new text end

new text begin (1) aggregate data-based education outcomes over time for deaf and hard-of-hearing
children, consistent with state academic standards and assessments under chapter 120B;
and
 new text end

new text begin (2) a data-based plan that includes evidence-based best practices known to improve
the educational outcomes of deaf and hard-of-hearing children.
 new text end

Sec. 20.

Minnesota Statutes 2008, section 125A.76, subdivision 1, is amended to read:


Subdivision 1.

Definitions.

For the purposes of this section, the definitions in this
subdivision apply.

(a) "Basic revenue" has the meaning given it in section 126C.10, subdivision 2.
For the purposes of computing basic revenue pursuant to this section, each child with a
disability shall be counted as prescribed in section 126C.05, subdivision 1.

(b) "Essential personnel" means teachers, cultural liaisons, related services, and
support services staff providing deleted text begin directdeleted text end services to students. Essential personnel may also
include special education paraprofessionals or clericals providing support to teachers and
students by preparing paperwork and making arrangements related to special education
compliance requirements, including parent meetings and individual education plans.new text begin
Essential personnel does not include administrators and supervisors.
new text end

(c) "Average daily membership" has the meaning given it in section 126C.05.

(d) "Program growth factor" means 1.046 for fiscal year 2012 and later.

Sec. 21. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

new text begin The sums indicated in this section are
appropriated from the general fund to the Department of Education for the fiscal years
designated.
 new text end

new text begin Subd. 2. new text end

new text begin Special education; regular. new text end

new text begin For special education aid under Minnesota
Statutes, section 125A.75:
 new text end

new text begin $
 new text end 		new text begin 609,003,000
 new text end 		new text begin .....
 new text end 		new text begin 2010
 new text end
new text begin $
 new text end 		new text begin 772,845,000
 new text end 		new text begin .....
 new text end 		new text begin 2011
 new text end

new text begin The 2010 appropriation includes $71,947,000 for 2009 and $537,056,000 for 2010.
 new text end

new text begin The 2011 appropriation includes $198,637,000 for 2010 and $574,208,000 for 2011.
 new text end

new text begin Subd. 3. new text end

new text begin Special education; excess costs. new text end

new text begin For excess cost aid under Minnesota
Statutes, section 125A.79, subdivision 7:
 new text end

new text begin $
 new text end 		new text begin 96,926,000
 new text end 		new text begin .....
 new text end 		new text begin 2010
 new text end
new text begin $
 new text end 		new text begin 110,871,000
 new text end 		new text begin .....
 new text end 		new text begin 2011
 new text end

new text begin The 2010 appropriation includes $37,046,000 for 2009 and $59,880,000 for 2010.
 new text end

new text begin The 2011 appropriation includes $50,967,000 for 2010 and $59,904,000 for 2011.
 new text end

new text begin Subd. 4. new text end

new text begin Aid for children with disabilities. new text end

new text begin For aid under Minnesota Statutes,
section 125A.75, subdivision 3, for children with disabilities placed in residential facilities
within the district boundaries for whom no district of residence can be determined:
 new text end

new text begin $
 new text end 		new text begin 1,717,000
 new text end 		new text begin .....
 new text end 		new text begin 2010
 new text end
new text begin $
 new text end 		new text begin 1,895,000
 new text end 		new text begin .....
 new text end 		new text begin 2011
 new text end

new text begin If the appropriation for either year is insufficient, the appropriation for the other
year is available.
 new text end

new text begin Subd. 5. new text end

new text begin Travel for home-based services. new text end

new text begin For aid for teacher travel for home-based
services under Minnesota Statutes, section 125A.75, subdivision 1:
 new text end

new text begin $
 new text end 		new text begin 214,000
 new text end 		new text begin .....
 new text end 		new text begin 2010
 new text end
new text begin $
 new text end 		new text begin 278,000
 new text end 		new text begin .....
 new text end 		new text begin 2011
 new text end

new text begin The 2010 appropriation includes $24,000 for 2009 and $190,000 for 2010.
 new text end

new text begin The 2011 appropriation includes $70,000 for 2010 and $208,000 for 2011.
 new text end

new text begin Subd. 6. new text end

new text begin Court-placed special education revenue. new text end

new text begin For reimbursing serving
school districts for unreimbursed eligible expenditures attributable to children placed in
the serving school district by court action under Minnesota Statutes, section 125A.79,
subdivision 4:
 new text end

new text begin $
 new text end 		new text begin 76,000
 new text end 		new text begin .....
 new text end 		new text begin 2010
 new text end
new text begin $
 new text end 		new text begin 78,000
 new text end 		new text begin .....
 new text end 		new text begin 2011
 new text end

new text begin Subd. 7. new text end

new text begin Special education out-of-state tuition. new text end

new text begin For special education out-of-state
tuition according to Minnesota Statutes, section 125A.79, subdivision 8:
 new text end

new text begin $
 new text end 		new text begin 250,000
 new text end 		new text begin .....
 new text end 		new text begin 2010
 new text end
new text begin $
 new text end 		new text begin 250,000
 new text end 		new text begin .....
 new text end 		new text begin 2011
 new text end

Sec. 22. new text begin REPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2008, sections 125A.03; 125A.05; and 125A.18, new text end new text begin are repealed.
 new text end

new text begin (b) new text end new text begin Minnesota Statutes 2008, sections 121A.66; and 121A.67, subdivision 1, new text end new text begin are
repealed effective July 1, 2011.
 new text end

new text begin (c) new text end new text begin Minnesota Rules, parts 3525.0210, subparts 5, 6, 9, 13, 17, 29, 30, 46, and 47;
3525.1100, subpart 2, item F; and 3525.2900, subpart 5; new text end new text begin are repealed effective July 1, 2011.
 new text end

new text begin (d) Minnesota Rules, parts 3525.0210, subparts 34 and 43; 3525.0400; 3525.2445;
and 3525.4220, new text end new text begin are repealed effective the day following final enactment.
 new text end

ARTICLE 4

FACILITIES AND TECHNOLOGY

Section 1.

Minnesota Statutes 2008, section 123B.02, subdivision 21, is amended to
read:


Subd. 21.

Wind energy conversion system.

The boardnew text begin , or more than one board
acting jointly under the authority granted by section 471.59, new text end may construct, acquire,
own in whole or in part, operate, and sell and retain and spend the payment received
from selling energy from a wind energy conversion system, as defined in section
216C.06, subdivision 19. deleted text begin Thedeleted text end new text begin An individual school new text end board's share of the installed
capacity of the wind energy conversion systems authorized by this subdivision must not
exceed 3.3 megawatts of nameplate capacitynew text begin , provided that if more than one board is
acting jointly, each board may have a separate share of no more than 3.3 megawatts of
nameplate capacitynew text end . A board owning, operating, or selling energy from a wind energy
conversion system must integrate information about wind energy conversion systems in its
educational programming. new text begin The board, or more than one board acting jointly under the
authority granted by section 471.59, may be a limited partner in a partnership, a member
of a limited liability company, or a shareholder in a corporation, established for the sole
purpose of constructing, acquiring, owning in whole or in part, financing, or operating a
wind energy conversion system for the benefit of the district or districts in accordance
with this section. A board individually, or acting jointly, or an entity of which a board is a
limited partner, member, or shareholder, may not sell, transmit, or distribute the electrical
energy at retail or provide for end use of the electrical energy at an off-site facility of the
board or entity. Nothing in this subdivision modifies the exclusive service territories or
exclusive right to serve as provided in sections 216B.37 to 216B.43.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 2.

Minnesota Statutes 2008, section 123B.57, subdivision 1, is amended to read:


Subdivision 1.

Health and safety program.

(a) To receive health and safety
revenue for any fiscal year a district must submit to the commissioner an application for
aid and levy by the date determined by the commissioner. The application may be for
hazardous substance removal, fire and life safety code repairs, labor and industry regulated
facility and equipment violations, and health, safety, and environmental management,
including indoor air quality management. The application must include a health and safety
program adopted by the school district board. The program must include the estimated
cost, per building, of the program by fiscal year. Upon approval through the adoption of
a resolution by each of an intermediate district's member school district boards and the
approval of the Department of Education, a school district may include its proportionate
share of the costs of health and safety projects for an intermediate district in its application.

(b) Health and safety projects with an estimated cost of $500,000 or more per sitedeleted text begin ,
approved after February 1, 2003,deleted text end are not eligible for health and safety revenue. Health
and safety projects with an estimated cost of $500,000 or more per sitedeleted text begin , approved after
February 1, 2003,deleted text end that meet all other requirements for health and safety funding, are
eligible for alternative facilities bonding and levy revenue according to section 123B.59.
A school board shall not separate portions of a single project into components to qualify
for health and safety revenue, and shall not combine unrelated projects into a single project
to qualify for alternative facilities bonding and levy revenue.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2009.
 new text end

Sec. 3.

Minnesota Statutes 2008, section 123B.59, subdivision 2, is amended to read:


Subd. 2.

Facility plan.

(a) A district qualifying under subdivision 1, paragraph
(a), must have a ten-year facility plan approved by the commissioner that includes an
inventory of projects and costs that would be eligible for:

(1) health and safety revenue, without restriction as to project size;

(2) disabled access levy; and

(3) deferred capital expenditures and maintenance projects necessary to prevent
further erosion of facilities.

(b) A district qualifying under subdivision 1, paragraph (b), must have a five-year
plan deleted text begin approved by the commissionerdeleted text end that includes an inventory of projects and costs for
health and safety projects with an estimated cost of $500,000 or more per site that would
qualify for health and safety revenue except for the project size limitation in section
123B.57, subdivision 1, paragraph (b).

(c) The school district must:

(1) annually update the plans;

(2) biennially submit a facility maintenance plan; and

(3) indicate whether the district will issue bonds to finance the plan or levy for
the costs.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2009.
 new text end

Sec. 4.

Minnesota Statutes 2008, section 123B.59, subdivision 3, is amended to read:


Subd. 3.

Bond authorization.

(a) A school district may issue general obligation
bonds under this section to finance facilities plans approved by its board and the
commissioner. Chapter 475, except sections 475.58 and 475.59, must be complied with.
The district may levy under subdivision 5 for the debt service revenue. The authority to
issue bonds under this section is in addition to any bonding authority authorized by this
chapter, or other law. The amount of bonding authority authorized under this section must
be disregarded in calculating the bonding or net debt limits of this chapter, or any other
law other than section 475.53, subdivision 4.

(b) At least 20 days before the earliest of solicitation of bids, the issuance of bonds,
or the final certification of levies under subdivision 5, the district must publish notice
of the intended projects, the amount of the bond issue, new text begin and new text end the total amount of district
indebtednessdeleted text begin , and the commissioner's review and comment, if applicabledeleted text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2009.
 new text end

Sec. 5.

Minnesota Statutes 2008, section 123B.59, subdivision 3a, is amended to read:


Subd. 3a.

Levy authorization.

(a) A school district may levy under this section to
finance the portion of facilities plans approved by its board and the commissioner that are
not financed through bond issues according to subdivision 3.

(b) At least 20 days before a final district certification of levies under subdivision
5, the district must publish notice of the intended projects, including the total estimated
project costdeleted text begin , and the commissioner's review and comment, if applicabledeleted text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2009.
 new text end

Sec. 6.

Minnesota Statutes 2008, section 123B.70, subdivision 1, is amended to read:


Subdivision 1.

Commissioner approval.

new text begin (a) new text end In determining whether to give a
school facility a positive, negative, or unfavorable review and comment, the commissioner
must evaluate the proposals for facilities using the information provided under section
123B.71, subdivision 9.

new text begin (b) In the case of a proposal for a new school, the local school board retains the
authority to determine the minimum acreage needed to accommodate the school and
related facilities. The commissioner may evaluate the proposals but must not issue a
negative or unfavorable review and comment under this section for a school facility solely
based on too little acreage of the proposed school site.
 new text end

new text begin (c) In the case of a proposal to renovate an existing school, the local school board
retains the authority to determine whether to renovate an existing school or to build a new
school regardless of the acreage of the current school site or the cost of the renovation
relative to the cost of building a new school. The commissioner's evaluation of whether
to replace a facility must not be solely based upon the ratio of renovation costs to
replacement costs.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for review and comments issued
after July 1, 2009.
 new text end

Sec. 7.

Minnesota Statutes 2008, section 123B.71, subdivision 8, is amended to read:


Subd. 8.

Review and comment.

A school district, a special education cooperative,
or a cooperative unit of government, as defined in section 123A.24, subdivision 2, must not
initiate an installment contract for purchase or a lease agreement, hold a referendum for
bonds, nor solicit bids for new construction, expansion, or remodeling of an educational
facility that requires an expenditure in excess of $500,000 new text begin per school site if the district has
an outstanding capital loan or $1,400,000 for all other school districts, special education
cooperatives, or cooperative units of government new text end per school site prior to review and
comment by the commissioner. The commissioner may exempt a facility maintenance
project funded with general education aid and levy, deleted text begin alternative facilities bonding and levy
program, or health and safety revenuedeleted text end from this provision after reviewing a written request
from a school district describing the scope of work. A school board shall not separate
portions of a single project into components to avoid the requirements of this subdivision.new text begin
The commissioner must exempt a facility maintenance project funded with capital
facilities bonding under section 123B.62, alternative facilities bonding and levy under
section 123B.59, or health and safety revenue under section 123B.57 from this provision.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2009.
 new text end

Sec. 8.

Minnesota Statutes 2008, section 123B.71, subdivision 9, is amended to read:


Subd. 9.

Information required.

A school board proposing to construct a facility
described in subdivision 8 shall submit to the commissioner a proposal containing
information including at least the following:

(1) the geographic area and population to be served, preschool through grade 12
student enrollments for the past five years, and student enrollment projections for the
next five years;

(2) a list of existing facilities by year constructed, their uses, and an assessment of
the extent to which alternate facilities are available within the school district boundaries
and in adjacent school districts;

(3) a list of the specific deficiencies of the facility that demonstrate the need for a
new or renovated facility to be provided, and a list of the specific benefits that the new
or renovated facility will provide to the students, teachers, and community users served
by the facility;

(4) the relationship of the project to any priorities established by the school district,
educational cooperatives that provide support services, or other public bodies in the
service area;

new text begin (5) a description of the pedestrian, bicycle, and transit connections between the
school and nearby residential areas that make it easier for children, teachers, and parents
to get to the school by walking, bicycling, and taking transit;
 new text end

deleted text begin (5)deleted text end new text begin (6)new text end a specification of how the project deleted text begin will increase community use of the facilitydeleted text end new text begin
maximizes the opportunity for cooperative use of existing park, recreation, and other
public facilitiesnew text end and whether and how the project will increase collaboration with other
governmental or nonprofit entities;

deleted text begin (6)deleted text end new text begin (7)new text end a description of the project, including the specification of site and outdoor
space acreage and square footage allocations for classrooms, laboratories, and support
spaces; estimated expenditures for the major portions of the project; and the dates the
project will begin and be completed;

deleted text begin (7)deleted text end new text begin (8)new text end a specification of the source of financing the project; the scheduled date
for a bond issue or school board action; a schedule of payments, including debt service
equalization aid; and the effect of a bond issue on local property taxes by the property
class and valuation;

deleted text begin (8)deleted text end new text begin (9)new text end an analysis of how the proposed new or remodeled facility will affect school
district operational or administrative staffing costs, and how the district's operating budget
will cover any increased operational or administrative staffing costs;

deleted text begin (9)deleted text end new text begin (10)new text end a description of the consultation with local or state deleted text begin road anddeleted text end transportation
officials on new text begin multimodal new text end school site access and safety issues, and the ways that the project
will address those issues;

deleted text begin (10)deleted text end new text begin (11)new text end a description of how indoor air quality issues have been considered and a
certification that the architects and engineers designing the facility will have professional
liability insurance;

deleted text begin (11)deleted text end new text begin (12)new text end as required under section 123B.72, for buildings coming into service
after July 1, 2002, a certification that the plans and designs for the extensively renovated
or new facility's heating, ventilation, and air conditioning systems will meet or exceed
code standards; will provide for the monitoring of outdoor airflow and total airflow of
ventilation systems; and will provide an indoor air quality filtration system that meets
ASHRAE standard 52.1;

deleted text begin (12)deleted text end new text begin (13)new text end a specification of any desegregation requirements that cannot be met
by any other reasonable means;

deleted text begin (13)deleted text end new text begin (14)new text end a specificationdeleted text begin , if applicable,deleted text end of how the facility will utilize environmentally
sustainable school facility design concepts; deleted text begin and
deleted text end

deleted text begin (14)deleted text end new text begin (15)new text end a description of how the architects and engineers have considered
the American National Standards Institute Acoustical Performance Criteria, Design
Requirements and Guidelines for Schools of the maximum background noise level and
reverberation timesdeleted text begin .deleted text end new text begin ; andnew text end

new text begin (16) any existing information from the relevant local unit of government about the
cumulative costs to provide infrastructure to serve the school, such as utilities, sewer,
roads, and sidewalks.
 new text end

Sec. 9.

Minnesota Statutes 2008, section 123B.71, subdivision 12, is amended to read:


Subd. 12.

Publication.

(a) At least 20 days but not more than 60 days before a
referendum for bonds or solicitation of bids for a project that has received a positive or
unfavorable review and comment under section 123B.70, the school board shall publish
the commissioner's review and comment of that project in the legal newspaper of the
district. Supplementary information shall be available to the public.

(b) The publication requirement in paragraph (a) does not apply to alternative
facilities projects approved under section 123B.59. deleted text begin Publication for alternative facilities
projects shall be as specified in section 123B.59, subdivisions 3 and 3a.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2009.
 new text end

Sec. 10.

Minnesota Statutes 2008, section 125B.26, is amended to read:


125B.26 TELECOMMUNICATIONS/INTERNET ACCESS EQUITY AID.

Subdivision 1.

Costs to be submitted.

(a) A district deleted text begin ordeleted text end new text begin ,new text end charter schoolnew text begin , or
intermediate school districtnew text end shall submit its actual telecommunications/Internet access
costs for the previous fiscal year, adjusted for any e-rate revenue received, to the
department by August 15 of each year as prescribed by the commissioner. Costs eligible
for reimbursement under this program are limited to the following:

(1) ongoing or recurring telecommunications/Internet access costs associated with
Internet access, data lines, and video links providing:

(i) the equivalent of one data line, video link, or integrated data/video link that relies
on a transport medium that operates at a minimum speed of 1.544 megabytes per second
(T1) for each elementary school, middle school, or high school under section 120A.05,
subdivisions 9, 11, and 13, including the recurring telecommunications line lease costs
and ongoing Internet access service fees; or

(ii) the equivalent of one data line or video circuit, or integrated data/video link that
relies on a transport medium that operates at a minimum speed of 1.544 megabytes per
second (T1) for each district, including recurring telecommunications line lease costs
and ongoing Internet access service fees;

(2) recurring costs of contractual or vendor-provided maintenance on the school
district's wide area network to the point of presence at the school building up to the router,
codec, or other service delivery equipment located at the point of presence termination
at the school or school district;

(3) recurring costs of cooperative, shared arrangements for regional delivery of
telecommunications/Internet access between school districts, postsecondary institutions,
and public libraries including network gateways, peering points, regional network
infrastructure, Internet2 access, and network support, maintenance, and coordination; and

(4) service provider installation fees for installation of new telecommunications lines
or increased bandwidth.

(b) Costs not eligible for reimbursement under this program include:

(1) recurring costs of school district staff providing network infrastructure support;

(2) recurring costs associated with voice and standard telephone service;

(3) costs associated with purchase of network hardware, telephones, computers, or
other peripheral equipment needed to deliver telecommunications access to the school or
school district;

(4) costs associated with laying fiber for telecommunications access;

(5) costs associated with wiring school or school district buildings;

(6) costs associated with purchase, installation, or purchase and installation of
Internet filtering; and

(7) costs associated with digital content, including online learning or distance
learning programming, and information databases.

Subd. 2.

E-rates.

To be eligible for aid under this section, a district deleted text begin ordeleted text end new text begin ,new text end charter
schoolnew text begin , or intermediate school districtnew text end is required to file an e-rate application either
separately or through its telecommunications access cluster and have a current technology
plan on file with the department. Discounts received on telecommunications expenditures
shall be reflected in the costs submitted to the department for aid under this section.

Subd. 3.

Reimbursement criteria.

The commissioner shall develop criteria
for approving costs submitted by organized school districts deleted text begin anddeleted text end new text begin ,new text end charter schoolsnew text begin , and
intermediate school districtsnew text end under subdivision 1.

Subd. 4.

District aid.

For fiscal year 2006 and later, a district deleted text begin ordeleted text end new text begin ,new text end charter deleted text begin school'sdeleted text end new text begin
school, or intermediate school district'snew text end Internet access equity aid equals the district deleted text begin ordeleted text end new text begin ,new text end
charter deleted text begin school'sdeleted text end new text begin school, or intermediate school district'snew text end approved cost for the previous
fiscal year according to subdivision 1 exceeding $15 times the district's adjusted marginal
cost pupil units for the previous fiscal year or no reduction if the district is part of an
organized telecommunications access cluster. Equity aid must be distributed to the
telecommunications access cluster for districtsnew text begin , charter schools, or intermediate school
districtsnew text end that are members of the cluster or to individual districts deleted text begin anddeleted text end new text begin ,new text end charter schoolsnew text begin , or
intermediate school districtsnew text end not part of a telecommunications access cluster.

Subd. 5.

Telecommunications/Internet access services for nonpublic schools.

(a) Districts shall provide each year upon formal request by or on behalf of a nonpublic
school, not including home schools, located in that district or area, ongoing or recurring
telecommunications access services to the nonpublic school either through existing district
providers or through separate providers.

(b) The amount of district aid for telecommunications access services for each
nonpublic school under this subdivision equals the lesser of:

(1) 90 percent of the nonpublic school's approved cost for the previous fiscal year
according to subdivision 1 exceeding $10 for fiscal year 2006 and later times the number
of weighted pupils enrolled at the nonpublic school as of October 1 of the previous
school year; or

(2) the product of the district's aid per pupil unit according to subdivision 4 times
the number of weighted pupils enrolled at the nonpublic school as of October 1 of the
previous school year.

(c) For purposes of this subdivision, nonpublic school pupils shall be weighted by
grade level using the weighting factors defined in section 126C.05, subdivision 1.

(d) Each year, a district providing services under paragraph (a) may claim up to five
percent of the aid determined in paragraph (b) for costs of administering this subdivision.
No district may expend an amount for these telecommunications access services which
exceeds the amount allocated under this subdivision. The nonpublic school is responsible
for the Internet access costs not covered by this section.

(e) At the request of a nonpublic school, districts may allocate the amount
determined in paragraph (b) directly to the nonpublic school to pay for or offset the
nonpublic school's costs for telecommunications access services; however, the amount
allocated directly to the nonpublic school may not exceed the actual amount of the school's
ongoing or recurring telecommunications access costs.

Subd. 6.

Severability.

If any portion of this section is found by a court to be
unconstitutional, the remaining portions of the section shall remain in effect.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 11. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

new text begin The sums indicated in this section are
appropriated from the general fund to the Department of Education for the fiscal years
designated.
 new text end

new text begin Subd. 2. new text end

new text begin Health and safety revenue. new text end

new text begin For health and safety aid according to
Minnesota Statutes, section 123B.57, subdivision 5:
 new text end

new text begin $
 new text end 		new text begin 132,000
 new text end 		new text begin .....
 new text end 		new text begin 2010
 new text end
new text begin $
 new text end 		new text begin 162,000
 new text end 		new text begin .....
 new text end 		new text begin 2011
 new text end

new text begin The 2010 appropriation includes $10,000 for 2009 and $122,000 for 2010.
 new text end

new text begin The 2011 appropriation includes $45,000 for 2010 and $117,000 for 2011.
 new text end

new text begin Subd. 3. new text end

new text begin Debt service equalization. new text end

new text begin For debt service aid according to Minnesota
Statutes, section 123B.53, subdivision 6:
 new text end

new text begin $
 new text end 		new text begin 6,608,000
 new text end 		new text begin .....
 new text end 		new text begin 2010
 new text end
new text begin $
 new text end 		new text begin 9,012,000
 new text end 		new text begin .....
 new text end 		new text begin 2011
 new text end

new text begin The 2010 appropriation includes $851,000 for 2009 and $5,757,000 for 2010.
 new text end

new text begin The 2011 appropriation includes $2,128,000 for 2010 and $6,884,000 for 2011.
 new text end

new text begin Subd. 4. new text end

new text begin Alternative facilities bonding aid. new text end

new text begin For alternative facilities bonding aid,
according to Minnesota Statutes, section 123B.59, subdivision 1:
 new text end

new text begin $
 new text end 		new text begin 16,008,000
 new text end 		new text begin .....
 new text end 		new text begin 2010
 new text end
new text begin $
 new text end 		new text begin 19,287,000
 new text end 		new text begin .....
 new text end 		new text begin 2011
 new text end

new text begin The 2010 appropriation includes $1,928,000 for 2009 and $14,080,000 for 2010.
 new text end

new text begin The 2011 appropriation includes $5,207,000 for 2010 and $14,080,000 for 2011.
 new text end

new text begin Subd. 5. new text end

new text begin Equity in telecommunications access. new text end

new text begin For equity in telecommunications
access:
 new text end

new text begin $
 new text end 		new text begin 3,750,000
 new text end 		new text begin .....
 new text end 		new text begin 2010
 new text end
new text begin $
 new text end 		new text begin 3,750,000
 new text end 		new text begin .....
 new text end 		new text begin 2011
 new text end

new text begin If the appropriation amount is insufficient, the commissioner shall reduce the
reimbursement rate in Minnesota Statutes, section 125B.26, subdivisions 4 and 5, and the
revenue for fiscal years 2010 and 2011 shall be prorated.
 new text end

new text begin Any balance in the first year does not cancel but is available in the second year.
 new text end

new text begin Subd. 6. new text end

new text begin Deferred maintenance aid. new text end

new text begin For deferred maintenance aid, according to
Minnesota Statutes, section 123B.591, subdivision 4:
 new text end

new text begin $
 new text end 		new text begin 1,916,000
 new text end 		new text begin .....
 new text end 		new text begin 2010
 new text end
new text begin $
 new text end 		new text begin 2,110,000
 new text end 		new text begin .....
 new text end 		new text begin 2011
 new text end

new text begin The 2010 appropriation includes $260,000 for 2009 and $1,656,000 for 2010.
 new text end

new text begin The 2011 appropriation includes $612,000 for 2010 and $1,498,000 for 2011.
 new text end

ARTICLE 5

LIBRARIES, NUTRITION, AND ACCOUNTING

Section 1.

Minnesota Statutes 2008, section 123B.10, subdivision 1, is amended to read:


Subdivision 1.

Budgets; form of notification.

(a) Every board must publish revenue
and expenditure budgets for the current year and the actual revenues, expenditures, fund
balances for the prior year and projected fund balances for the current year in a form
prescribed by the commissioner within one week of the acceptance of the final audit by
the board, or November 30, whichever is earlier. The forms prescribed must be designed
so that year to year comparisons of revenue, expenditures and fund balances can be made.

(b) A school board annually must notify the public of its revenue, expenditures, fund
balances, and other relevant budget information. The board must deleted text begin include the budget
information required by this section in the materials provided as a part of its truth in
taxation hearing,deleted text end post the materials in a conspicuous place on the district's official Web
site, including a link to the district's school report card on the Department of Education's
Web site, and publish new text begin a summary of new text end the information new text begin and the address of the district's
official Web site where the information can be found new text end in a qualified newspaper of general
circulation in the district.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 2.

Minnesota Statutes 2008, section 123B.14, subdivision 7, is amended to read:


Subd. 7.

Clerk records.

The clerk shall keep a record of all meetings of the
district and the board in books provided by the district for that purpose. The clerk shall,
within three days after an election, notify all persons elected of their election. By deleted text begin Augustdeleted text end
new text begin September new text end 15 of each year the clerk shall file with the board a report of the revenues,
expenditures and balances in each fund for the preceding fiscal year. The report together
with vouchers and supporting documents shall subsequently be examined by a public
accountant or the state auditor, either of whom shall be paid by the district, as provided
in section 123B.77, subdivision 3. The board shall by resolution approve the report or
require a further or amended report. By deleted text begin Augustdeleted text end new text begin September new text end 15 of each year, the clerk shall
make and transmit to the commissioner certified reports, showing:

(1) deleted text begin The condition and value of school property;
deleted text end

deleted text begin (2)deleted text end the revenues and expenditures in detail, and such other financial information
required by law, rule, or as may be called for by the commissioner;

deleted text begin (3)deleted text end new text begin (2)new text end the length of school term and the enrollment and attendance by grades; and

deleted text begin (4)deleted text end new text begin (3)new text end such other items of information as may be called for by the commissioner.

The clerk shall enter in the clerk's record book copies of all reports and of the
teachers' term reports, as they appear in the registers, and of the proceedings of any
meeting as furnished by the clerk pro tem, and keep an itemized account of all the
expenses of the district. The clerk shall furnish to the auditor of the proper county, by
deleted text begin October 10deleted text end new text begin September 30 new text end of each year, an attested copy of the clerk's record, showing
the amount of deleted text begin moneydeleted text end new text begin proposed property tax new text end voted by the district or the board for school
purposes; draw and sign all orders upon the treasurer for the payment of money for bills
allowed by the board for salaries of officers and for teachers' wages and all claims, to be
countersigned by the chair. Such orders must state the consideration, payee, and the
fund and the clerk shall take a receipt therefor. Teachers' wages shall have preference in
the order in which they become due, and no money applicable for teachers' wages shall
be used for any other purpose, nor shall teachers' wages be paid from any fund except
that raised or apportioned for that purpose.

Sec. 3.

Minnesota Statutes 2008, section 123B.75, subdivision 5, is amended to read:


Subd. 5.

Levy recognition.

(a) "School district tax settlement revenue" means the
current, delinquent, and manufactured home property tax receipts collected by the county
and distributed to the school district.

(b) deleted text begin For fiscal year 2004 and later years, in June of each yeardeleted text end new text begin In June of 2009new text end , the
school district must recognize as revenue, in the fund for which the levy was made, the
lesser of:

(1) the sum of May, June, and July school district tax settlement revenue received in
that calendar year, plus general education aid according to section 126C.13, subdivision
4, received in July and August of that calendar year; or

(2) the sum of:

(i) 31 percent of the referendum levy certified according to section 126C.17, in
calendar year 2000; and

(ii) the entire amount of the levy certified in the prior calendar year according to
section 124D.86, subdivision 4, for school districts receiving revenue under sections
124D.86, subdivision 3, clauses (1), (2), and (3); 126C.41, subdivisions 1, 2, and 3,
paragraphs (b), (c), and (d); 126C.43, subdivision 2; 126C.457; and 126C.48, subdivision
6.

new text begin (c) For fiscal year 2010 and later years, in June of each year, the school district must
recognize as revenue, in the fund for which the levy was made, the lesser of:
 new text end

new text begin (1) the sum of May, June, and July school district tax settlement revenue received in
that calendar year, plus general education aid according to section 126C.13, subdivision
4, received in July and August of that calendar year; or
 new text end

new text begin (2) the sum of:
 new text end

new text begin (i) the greater of 49.1 percent of the referendum levy certified according to section
126C.17, in the prior calendar year or 31 percent of the referendum levy certified
according to section 126C.17, in calendar year 2000; plus
 new text end

new text begin (ii) the entire amount of the levy certified in the prior calendar year according to
section 124D.86, subdivision 4, for school districts receiving revenue under sections
124D.86, subdivision 3, clauses (1), (2), and (3); 126C.41, subdivisions 1, 2, and 3,
paragraphs (b), (c), and (d); 126C.43, subdivision 2; 126C.457; and 126C.48, subdivision
6; plus
 new text end

new text begin (iii) 49.1 percent of the amount of the levy certified in the prior calendar year for the
school district's general and community service funds, plus or minus auditor's adjustments,
not including the levy portions that are assumed by the state, that remains after subtracting
the referendum levy certified according to section 126C.17 and the amount recognized
according to clause (ii).
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 4.

Minnesota Statutes 2008, section 123B.76, subdivision 3, is amended to read:


Subd. 3.

Expenditures by building.

(a) For the purposes of this section, "building"
means education site as defined in section 123B.04, subdivision 1.

(b) Each district shall deleted text begin maintain separate accounts todeleted text end identify general fund
expenditures for each buildingnew text begin to the extent provided by the uniform financial accounting
and reporting standards for school unitsnew text end . deleted text begin All expenditures for regular instruction,
secondary vocational instruction, and school administration must be reported to
the department separately for each building. All expenditures for special education
instruction, instructional support services, and pupil support services provided within a
specific building must be reported to the department separately for each building. Salary
expenditures reported by building must reflect actual salaries for staff at the building and
must not be based on districtwide averages. All otherdeleted text end General fund expendituresnew text begin not
available at the building level through the uniform financial accounting and reporting
standardsnew text end may be reported by building or on a districtwide basis.

(c) The department must annually report information showing school district general
fund expenditures per pupil by program category for each building and estimated school
district general fund revenue generated by pupils attending each building on its Web
site. For purposes of this report:

(1) expenditures not reported by building shall be allocated among buildings on a
uniform per pupil basis;

(2) basic skills revenue shall be allocated according to section 126C.10, subdivision
4;

(3) secondary sparsity revenue and elementary sparsity revenue shall be allocated
according to section 126C.10, subdivisions 7 and 8;

(4) alternative teacher compensation revenue shall be allocated according to section
122A.415, subdivision 1;

(5) other general education revenue shall be allocated on a uniform per pupil unit
basis;

(6) first grade preparedness aid shall be allocated according to section 124D.081;

(7) state and federal special education aid and Title I aid shall be allocated in
proportion to district expenditures for these programs by building; and

(8) other general fund revenues shall be allocated on a uniform per pupil basis,
except that the department may allocate other revenues attributable to specific buildings
directly to those buildings.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for fiscal years 2010 and later.
 new text end

Sec. 5.

Minnesota Statutes 2008, section 123B.79, subdivision 7, is amended to read:


Subd. 7.

Account transfer for deleted text begin certain severance paydeleted text end new text begin designated separation
and retirement benefitsnew text end .

A district may new text begin separately new text end maintain in a deleted text begin reserve for certain
severance paydeleted text end new text begin designated for separation and retirement benefitnew text end account deleted text begin not more than 50
percent ofdeleted text end the amount necessary to meet the obligations for deleted text begin the portion of severance
pay that constitutes compensation for accumulated sick leave to be used for payment of
premiums for group insurance provided for former employees by the districtdeleted text end new text begin separation
and retirement benefits, including compensated absences, termination benefits, pension
benefits, and other postemployment benefits, not accounted for elsewherenew text end . The amount
necessary must be calculated according to standards established by the department.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 6.

Minnesota Statutes 2008, section 123B.81, subdivision 3, is amended to read:


Subd. 3.

Debt verification.

The commissioner shall establish a uniform auditing or
other verification procedure for districts to determine whether a statutory operating debt
exists in any Minnesota school district deleted text begin as of June 30, 1977. This procedure must identify
all interfund transfers made during fiscal year 1977 from a fund included in computing
statutory operating debt to a fund not included in computing statutory operating debtdeleted text end . The
standards for this uniform auditing or verification procedure must be promulgated by the
deleted text begin state board pursuant to chapter 14deleted text end new text begin commissionernew text end . If a district applies to the commissioner
for a statutory operating debt verification deleted text begin or if the unaudited financial statement for the
school year ending June 30, 1977 reveals that a statutory operating debt might existdeleted text end , the
commissioner shall require a verification of the amount of the statutory operating debt
which actually does exist.

Sec. 7.

Minnesota Statutes 2008, section 123B.81, subdivision 4, is amended to read:


Subd. 4.

Debt elimination.

If an audit or other verification procedure conducted
pursuant to subdivision 3 determines that a statutory operating debt exists, a district
must follow the procedures deleted text begin set forthdeleted text end in deleted text begin thisdeleted text end section new text begin 123B.83 new text end to eliminate this statutory
operating debt.

Sec. 8.

Minnesota Statutes 2008, section 123B.81, subdivision 5, is amended to read:


Subd. 5.

Certification of debt.

The commissioner shall certify the amount of
statutory operating debt for each district. deleted text begin Prior to June 30, 1979, the commissioner may,
on the basis of corrected figures, adjust the total amount of statutory operating debt
certified for any district.
deleted text end

Sec. 9.

Minnesota Statutes 2008, section 124D.111, subdivision 3, is amended to read:


Subd. 3.

School food service fund.

(a) The expenses described in this subdivision
must be recorded as provided in this subdivision.

(b) In each district, the expenses for a school food service program for pupils must
be attributed to a school food service fund. Under a food service program, the school
food service may prepare or serve milk, meals, or snacks in connection with school or
community service activities.

(c) Revenues and expenditures for food service activities must be recorded in the
food service fund. The costs of processing applications, accounting for meals, preparing
and serving food, providing kitchen custodial services, and other expenses involving the
preparing of meals or the kitchen section of the lunchroom may be charged to the food
service fund or to the general fund of the district. The costs of lunchroom supervision,
lunchroom custodial services, lunchroom utilities, and other administrative costs of the
food service program must be charged to the general fund.

That portion of superintendent and fiscal manager costs that can be documented as
attributable to the food service program may be charged to the food service fund provided
that the school district does not employ or contract with a food service director or other
individual who manages the food service program, or food service management company.
If the cost of the superintendent or fiscal manager is charged to the food service fund,
the charge must be at a wage rate not to exceed the statewide average for food service
directors as determined by the department.

(d) Capital expenditures for the purchase of food service equipment must be made
from the general fund and not the food service fund, unless two conditions apply:

(1) the unreserved balance in the food service fund at the end of the last fiscal year is
greater than the cost of the equipment to be purchased; and

(2) the department has approved the purchase of the equipment.

(e) If the two conditions set out in paragraph (d) apply, the equipment may be
purchased from the food service fund.

(f) If a deficit in the food service fund exists at the end of a fiscal year, and the deficit
is not eliminated by revenues from food service operations in the next fiscal year, then the
deficit must be eliminated by a permanent fund transfer from the general fund at the end of
deleted text begin thatdeleted text end new text begin the new text end second fiscal yearnew text begin following the year in which the deficit occurrednew text end . However, if a
district contracts with a food service management company during the period in which
the deficit has accrued, the deficit must be deleted text begin eliminated by a payment fromdeleted text end new text begin attributed to new text end the
food service management companynew text begin or the district or bothnew text end .

new text begin The amount of the deficit attributable to the district shall be the revenue shortfall
caused by the difference between the contractually agreed upon prices for meals, a la
carte, vending and catering and the actual prices charged by the district plus the amount of
expenditures charged to the food service fund by the district in excess of the contractually
agreed upon budget. The remaining amount of the deficit shall be attributable to the food
service management company.
 new text end

new text begin The amount of the deficit attributable to the food service management company
must be eliminated by a payment to the district by the end of the fiscal year following the
year in which the deficit occurred. If the payment is not made by the end of the fiscal year
following the year in which the deficit occurred, the food service management company
may not bid on any food service management contracts throughout the state until such
payment has been made.
 new text end

(g) Notwithstanding paragraph (f), a district may incur a deficit in the food service
fund for up to three years without making the permanent transfer if the district submits
to the commissioner by January 1 of the second fiscal year a plan for eliminating that
deficit at the end of the third fiscal year.

(h) If a surplus in the food service fund exists at the end of a fiscal year for three
successive years, a district may recode for that fiscal year the costs of lunchroom
supervision, lunchroom custodial services, lunchroom utilities, and other administrative
costs of the food service program charged to the general fund according to paragraph (c)
and charge those costs to the food service fund in a total amount not to exceed the amount
of surplus in the food service fund.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 10.

Minnesota Statutes 2008, section 127A.441, is amended to read:


127A.441 AID REDUCTION; LEVY REVENUE RECOGNITION CHANGE.

Each year, the state aids payable to any school district for that fiscal year that are
recognized as revenue in the school district's general and community service funds shall
be adjusted by an amount equal to (1) the amount the district recognized as revenue for the
prior fiscal year pursuant to section 123B.75, subdivision 5, paragraph (b)new text begin or (c)new text end , minus (2)
the amount the district recognized as revenue for the current fiscal year pursuant to section
123B.75, subdivision 5, paragraph (b)new text begin or (c)new text end . For purposes of making the aid adjustments
under this section, the amount the district recognizes as revenue for either the prior fiscal
year or the current fiscal year pursuant to section 123B.75, subdivision 5, paragraph (b),
shall not include any amount levied pursuant to section 124D.86, subdivision 4, for school
districts receiving revenue under sections 124D.86, subdivision 3, clauses (1), (2), and (3);
126C.41, subdivisions 1, 2, and 3, paragraphs (b), (c), and (d); 126C.43, subdivision 2;
126C.457; and 126C.48, subdivision 6. Payment from the permanent school fund shall not
be adjusted pursuant to this section. The school district shall be notified of the amount of
the adjustment made to each payment pursuant to this section.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 11.

Minnesota Statutes 2008, section 127A.45, subdivision 2, is amended to read:


Subd. 2.

Definitions.

(a) deleted text begin The termdeleted text end "Other district receipts" means payments by
county treasurers pursuant to section 276.10, apportionments from the school endowment
fund pursuant to section 127A.33, apportionments by the county auditor pursuant to
section 127A.34, subdivision 2, and payments to school districts by the commissioner of
revenue pursuant to chapter 298.

(b) deleted text begin The termdeleted text end "Cumulative amount guaranteed" means the product of

(1) the cumulative disbursement percentage shown in subdivision 3; times

(2) the sum of

(i) the current year aid payment percentage of the estimated aid and credit
entitlements paid according to subdivision 13; plus

(ii) 100 percent of the entitlements paid according to subdivisions 11 and 12; plus

(iii) the other district receipts.

(c) deleted text begin The termdeleted text end "Payment date" means the date on which state payments to districts
are made by the electronic funds transfer method. If a payment date falls on a Saturday,
a Sunday, or a weekday which is a legal holiday, the payment shall be made on the
immediately preceding business day. The commissioner may make payments on dates
other than those listed in subdivision 3, but only for portions of payments from any
preceding payment dates which could not be processed by the electronic funds transfer
method due to documented extenuating circumstances.

(d) The current year aid payment percentage equals deleted text begin 90deleted text end new text begin 73new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal years 2010
and later.
 new text end

Sec. 12.

Minnesota Statutes 2008, section 127A.45, subdivision 3, is amended to read:


Subd. 3.

Payment dates and percentages.

(a) deleted text begin For fiscal year 2004 and later,deleted text end
The commissioner shall pay to a district on the dates indicated an amount computed
as follows: the cumulative amount guaranteed minus the sum of (a) the district's other
district receipts through the current payment, and (b) the aid and credit payments through
the immediately preceding payment. For purposes of this computation, the payment dates
and the cumulative disbursement percentages are as follows:

Payment date
 Percentage
Payment 1
 July 15:
 5.5
Payment 2
 July 30:
 8.0
Payment 3
 August 15:
 17.5
Payment 4
 August 30:
 20.0
Payment 5
 September 15:
 22.5
Payment 6
 September 30:
 25.0
Payment 7
 October 15:
 27.0
Payment 8
 October 30:
 30.0
Payment 9
 November 15:
 32.5
Payment 10
 November 30:
 36.5
Payment 11
 December 15:
 42.0
Payment 12
 December 30:
 45.0
Payment 13
 January 15:
 50.0
Payment 14
 January 30:
 54.0
Payment 15
 February 15:
 58.0
Payment 16
 February 28:
 63.0
Payment 17
 March 15:
 68.0
Payment 18
 March 30:
 74.0
Payment 19
 April 15:
 78.0
Payment 20
 April 30:
 85.0
Payment 21
 May 15:
 90.0
Payment 22
 May 30:
 95.0
Payment 23
 June 20:
 100.0

(b) deleted text begin In addition to the amounts paid under paragraph (a), for fiscal year 2004, the
commissioner shall pay to a district on the dates indicated an amount computed as follows:
deleted text end

deleted text begin Payment 3
 deleted text end 		deleted text begin August 15: the final adjustment for the prior fiscal year for the state paid
property tax credits established in section 273.1392
 deleted text end
deleted text begin Payment 4
 deleted text end 		deleted text begin August 30: one-third of the final adjustment for the prior fiscal year for
all aid entitlements except state paid property tax credits
 deleted text end
deleted text begin Payment 6
 deleted text end 		deleted text begin September 30: one-third of the final adjustment for the prior fiscal year
for all aid entitlements except state paid property tax credits
 deleted text end
deleted text begin Payment 8
 deleted text end 		deleted text begin October 30: one-third of the final adjustment for the prior fiscal year for
all aid entitlements except state paid property tax credits
 deleted text end

deleted text begin (c)deleted text end In addition to the amounts paid under paragraph (a), deleted text begin for fiscal year 2005 and
later,deleted text end the commissioner shall pay to a district on the dates indicated an amount computed
as follows:

Payment 3
 August 15: the final adjustment for the prior fiscal year for the state paid
property tax credits established in section 273.1392
Payment 4
 August 30: 30 percent of the final adjustment for the prior fiscal year for
all aid entitlements except state paid property tax credits
Payment 6
 September 30: 40 percent of the final adjustment for the prior fiscal year
for all aid entitlements except state paid property tax credits
Payment 8
 October 30: 30 percent of the final adjustment for the prior fiscal year
for all aid entitlements except state paid property tax credits

Sec. 13.

Minnesota Statutes 2008, section 127A.45, is amended by adding a
subdivision to read:


new text begin Subd. 7b. new text end

new text begin Advance final payment. new text end

new text begin (a) Notwithstanding subdivisions 3 and 7,
a school district or charter school exceeding its expenditure limitations under section
123B.83 as of June 30 of the prior fiscal year may receive a portion of its final payment
for the current fiscal year on June 20, if requested by the district or charter school. The
amount paid under this subdivision must not exceed the lesser of:
 new text end

new text begin (1) the difference between 90 percent and the current year payment percentage in
subdivision 2, paragraph (d), in the current fiscal year times the sum of the district or
charter school's general education aid plus the aid adjustment in section 127A.50 for
the current fiscal year; or
 new text end

new text begin (2) the amount by which the district's or charter school's net negative unreserved
general fund balance as of June 30 of the prior fiscal year exceeds 2.5 percent of the
district or charter school's expenditures for that fiscal year.
 new text end

new text begin (b) The state total advance final payment under this subdivision for any year must
not exceed $7,500,000. If the amount request exceeds $7,500,000, the advance final
payment for each eligible district must be reduced proportionately.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal years 2010
and later.
 new text end

Sec. 14.

Minnesota Statutes 2008, section 127A.45, subdivision 13, is amended to read:


Subd. 13.

Aid payment percentage.

Except as provided in subdivisions 11, 12, 12a,
and 14, each fiscal year, all education aids and credits in this chapter and chapters 120A,
120B, 121A, 122A, 123A, 123B, 124D, 125A, 125B, 126C, 134, and section 273.1392,
shall be paid at the current year aid payment percentage of the estimated entitlement during
the fiscal year of the entitlement. deleted text begin For the purposes of this subdivision, a district's estimated
entitlement for special education excess cost aid under section 125A.79 for fiscal year
2005 equals 70 percent of the district's entitlement for the second prior fiscal year.deleted text end For the
purposes of this subdivision, a district's estimated entitlement for special education excess
cost aid under section 125A.79 for fiscal year 2006 and later equals 74.0 percent of the
district's entitlement for the current fiscal year. The final adjustment payment, according
to subdivision 9, must be the amount of the actual entitlement, after adjustment for actual
data, minus the payments made during the fiscal year of the entitlement.

Sec. 15.

Minnesota Statutes 2008, section 127A.47, subdivision 5, is amended to read:


Subd. 5.

Notification of resident district.

A district educating a pupil who is
a resident of another district must notify the district of residence within 60 days of the
date the pupil is determined by the district to be a nonresident, but not later than August
1 following the end of the school year in which the pupil is educated. deleted text begin If the district of
residence does not receive a notification from the providing district pursuant to this
subdivision, it is not liable to that district for any tuition billing received after August 1
of the next school year.
deleted text end

Sec. 16.

Minnesota Statutes 2008, section 134.31, subdivision 4a, is amended to read:


Subd. 4a.

Services to deleted text begin the blind and physically handicappeddeleted text end new text begin people with visual
and physical disabilitiesnew text end .

The Minnesota Department of Education shall provide
specialized services to deleted text begin the blind and physically handicappeddeleted text end new text begin people with visual and
physical disabilitiesnew text end through the Minnesota new text begin Braille and Talking Book new text end Library deleted text begin for the Blind
and Physically Handicappeddeleted text end under a cooperative plan with the National Library Services
for the Blind and Physically Handicapped of the Library of Congress.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 17.

Minnesota Statutes 2008, section 134.31, is amended by adding a subdivision
to read:


new text begin Subd. 7. new text end

new text begin Telephone or electronic meetings. new text end

new text begin (a) Notwithstanding section 13D.01,
the Advisory Committee for the Minnesota Braille and Talking Book Library may conduct
a meeting of its members by telephone or other electronic means so long as the following
conditions are met:
 new text end

new text begin (1) all members of the committee participating in the meeting, wherever their
physical locations, can hear one another and can hear all discussion and testimony;
 new text end

new text begin (2) members of the public present at the regular meeting location of the committee
can hear all discussion, testimony, and votes of the members of the committee;
 new text end

new text begin (3) at least one member of the committee is physically present at the regular meeting
location; and
 new text end

new text begin (4) all votes are conducted by roll call, so each member's vote on each issue can be
identified and recorded.
 new text end

new text begin (b) Each member of the committee participating in a meeting by telephone or other
electronic means is considered present at the meeting for purposes of determining quorum
and participating in all proceedings.
 new text end

new text begin (c) If telephone or other electronic means is used to conduct a meeting, to the extent
practical, the committee shall allow a person to monitor the meeting electronically from a
remote location. The committee may require the person making the connection to pay
for the documented additional costs that the committee incurs as a result of the additional
connection.
 new text end

new text begin (d) If telephone or other electronic means is used to conduct a regular, special, or
emergency meeting, the committee shall provide notice of the regular meeting location,
the fact that some members may participate by telephone or other electronic means, and
the provisions of paragraph (c). The timing and method of providing notice is governed
by section 13D.04.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 18.

Minnesota Statutes 2008, section 275.065, subdivision 3, is amended to read:


Subd. 3.

Notice of proposed property taxes.

(a) The county auditor shall prepare
and the county treasurer shall deliver after November 10 and on or before November 24
each year, by first class mail to each taxpayer at the address listed on the county's current
year's assessment roll, a notice of proposed property taxes. Upon written request by
the taxpayer, the treasurer may send the notice in electronic form or by electronic mail
instead of on paper or by ordinary mail.

(b) The commissioner of revenue shall prescribe the form of the notice.

(c) The notice must inform taxpayers that it contains the amount of property taxes
each taxing authority proposes to collect for taxes payable the following year. In the
case of a town, or in the case of the state general tax, the final tax amount will be its
proposed tax. deleted text begin In the case of taxing authorities required to hold a public meeting under
subdivision 6, the notice must clearly state that each taxing authority, including regional
library districts established under section 134.201, and including the metropolitan taxing
districts as defined in paragraph (i), but excluding all other special taxing districts and
towns, will hold a public meeting to receive public testimony on the proposed budget and
proposed or final property tax levy, or, in case of a school district, on the current budget
and proposed property tax levy.deleted text end new text begin The notice must clearly state for each city, county, school
district, regional library authority established under section 134.201, and metropolitan
taxing districts as defined in paragraph (i), the time and place of the taxing authority's
regularly scheduled meetings in which the budget and levy will be discussed and the final
budget and levy determined. The taxing authorities must provide the county auditor with
the information to be included in the notice.new text end It must deleted text begin clearly state the time and place of
each taxing authority's meeting,deleted text end new text begin providenew text end a telephone number for the taxing authority that
taxpayers may call if they have questions related to the noticedeleted text begin ,deleted text end and an address where
comments will be received by mail.

(d) The notice must state for each parcel:

(1) the market value of the property as determined under section 273.11, and used
for computing property taxes payable in the following year and for taxes payable in the
current year as each appears in the records of the county assessor on November 1 of the
current year; and, in the case of residential property, whether the property is classified as
homestead or nonhomestead. The notice must clearly inform taxpayers of the years to
which the market values apply and that the values are final values;

(2) the items listed below, shown separately by county, city or town, and state general
tax, net of the residential and agricultural homestead credit under section 273.1384, voter
approved school levy, other local school levy, and the sum of the special taxing districts,
and as a total of all taxing authorities:

(i) the actual tax for taxes payable in the current year; and

(ii) the proposed tax amount.

If the county levy under clause (2) includes an amount for a lake improvement
district as defined under sections 103B.501 to 103B.581, the amount attributable for that
purpose must be separately stated from the remaining county levy amount.

In the case of a town or the state general tax, the final tax shall also be its proposed
tax unless the town changes its levy at a special town meeting under section 365.52. If a
school district has certified under section 126C.17, subdivision 9, that a referendum will
be held in the school district at the November general election, the county auditor must
note next to the school district's proposed amount that a referendum is pending and that, if
approved by the voters, the tax amount may be higher than shown on the notice. In the
case of the city of Minneapolis, the levy for Minneapolis Park and Recreation shall be
listed separately from the remaining amount of the city's levy. In the case of the city of
St. Paul, the levy for the St. Paul Library Agency must be listed separately from the
remaining amount of the city's levy. In the case of Ramsey County, any amount levied
under section 134.07 may be listed separately from the remaining amount of the county's
levy. In the case of a parcel where tax increment or the fiscal disparities areawide tax
under chapter 276A or 473F applies, the proposed tax levy on the captured value or the
proposed tax levy on the tax capacity subject to the areawide tax must each be stated
separately and not included in the sum of the special taxing districts; and

(3) the increase or decrease between the total taxes payable in the current year and
the total proposed taxes, expressed as a percentage.

For purposes of this section, the amount of the tax on homesteads qualifying under
the senior citizens' property tax deferral program under chapter 290B is the total amount
of property tax before subtraction of the deferred property tax amount.

(e) The notice must clearly state that the proposed or final taxes do not include
the following:

(1) special assessments;

(2) levies approved by the voters after the date the proposed taxes are certified,
including bond referenda and school district levy referenda;

(3) a levy limit increase approved by the voters by the first Tuesday after the first
Monday in November of the levy year as provided under section 275.73;

(4) amounts necessary to pay cleanup or other costs due to a natural disaster
occurring after the date the proposed taxes are certified;

(5) amounts necessary to pay tort judgments against the taxing authority that become
final after the date the proposed taxes are certified; and

(6) the contamination tax imposed on properties which received market value
reductions for contamination.

(f) Except as provided in subdivision 7, failure of the county auditor to prepare or
the county treasurer to deliver the notice as required in this section does not invalidate the
proposed or final tax levy or the taxes payable pursuant to the tax levy.

(g) If the notice the taxpayer receives under this section lists the property as
nonhomestead, and satisfactory documentation is provided to the county assessor by the
applicable deadline, and the property qualifies for the homestead classification in that
assessment year, the assessor shall reclassify the property to homestead for taxes payable
in the following year.

(h) In the case of class 4 residential property used as a residence for lease or rental
periods of 30 days or more, the taxpayer must either:

(1) mail or deliver a copy of the notice of proposed property taxes to each tenant,
renter, or lessee; or

(2) post a copy of the notice in a conspicuous place on the premises of the property.

The notice must be mailed or posted by the taxpayer by November 27 or within
three days of receipt of the notice, whichever is later. A taxpayer may notify the county
treasurer of the address of the taxpayer, agent, caretaker, or manager of the premises to
which the notice must be mailed in order to fulfill the requirements of this paragraph.

(i) For purposes of this subdivisiondeleted text begin , subdivisionsdeleted text end new text begin and subdivisionnew text end 5a deleted text begin and 6deleted text end ,
"metropolitan special taxing districts" means the following taxing districts in the
seven-county metropolitan area that levy a property tax for any of the specified purposes
listed below:

(1) Metropolitan Council under section 473.132, 473.167, 473.249, 473.325,
473.446, 473.521, 473.547, or 473.834;

(2) Metropolitan Airports Commission under section 473.667, 473.671, or 473.672;
and

(3) Metropolitan Mosquito Control Commission under section 473.711.

For purposes of this section, any levies made by the regional rail authorities in the
county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter
398A shall be included with the appropriate county's levy deleted text begin and shall be discussed at that
county's public hearingdeleted text end .

(j) The governing body of a county, city, or school district may, with the consent
of the county board, include supplemental information with the statement of proposed
property taxes about the impact of state aid increases or decreases on property tax
increases or decreases and on the level of services provided in the affected jurisdiction.
This supplemental information may include information for the following year, the current
year, and for as many consecutive preceding years as deemed appropriate by the governing
body of the county, city, or school district. It may include only information regarding:

(1) the impact of inflation as measured by the implicit price deflator for state and
local government purchases;

(2) population growth and decline;

(3) state or federal government action; and

(4) other financial factors that affect the level of property taxation and local services
that the governing body of the county, city, or school district may deem appropriate to
include.

The information may be presented using tables, written narrative, and graphic
representations and may contain instruction toward further sources of information or
opportunity for comment.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2010 and
thereafter.
 new text end

Sec. 19.

Minnesota Statutes 2008, section 275.065, subdivision 6, is amended to read:


Subd. 6.

deleted text begin Public hearing;deleted text end Adoption of budget and levy.

deleted text begin (a) For purposes of this
section, the following terms shall have the meanings given:
 deleted text end

deleted text begin (1) "Initial hearing" means the first and primary hearing held to discuss the taxing
authority's proposed budget and proposed property tax levy for taxes payable in the
following year, or, for school districts, the current budget and the proposed property tax
levy for taxes payable in the following year.
 deleted text end

deleted text begin (2) "Continuation hearing" means a hearing held to complete the initial hearing, if
the initial hearing is not completed on its scheduled date.
 deleted text end

deleted text begin (3) "Subsequent hearing" means the hearing held to adopt the taxing authority's final
property tax levy, and, in the case of taxing authorities other than school districts, the final
budget, for taxes payable in the following year.
 deleted text end

deleted text begin (b) Between November 29 and December 20, the governing bodies of a city that has a
population over 500, county, metropolitan special taxing districts as defined in subdivision
3, paragraph (i), and regional library districts shall each hold an initial public hearing
to discuss and seek public comment on its final budget and property tax levy for taxes
payable in the following year, and the governing body of the school district shall hold an
initial public hearing to review its current budget and proposed property tax levy for taxes
payable in the following year. The metropolitan special taxing districts shall be required to
hold only a single joint initial public hearing, the location of which will be determined by
the affected metropolitan agencies. A city, county, metropolitan special taxing district as
defined in subdivision 3, paragraph (i), regional library district established under section
134.201, or school district is not required to hold a public hearing under this subdivision
unless its proposed property tax levy for taxes payable in the following year, as certified
under subdivision 1, has increased over its final property tax levy for taxes payable in the
current year by a percentage that is greater than the percentage increase in the implicit
price deflator for government consumption expenditures and gross investment for state
and local governments prepared by the Bureau of Economic Analysts of the United States
Department of Commerce for the 12-month period ending March 31 of the current year.
 deleted text end

deleted text begin (c) The initial hearing must be held after 5:00 p.m. if scheduled on a day other than
Saturday. No initial hearing may be held on a Sunday.
 deleted text end

deleted text begin (d) At the initial hearing under this subdivision, the percentage increase in property
taxes proposed by the taxing authority, if any, and the specific purposes for which property
tax revenues are being increased must be discussed. During the discussion, the governing
body shall hear comments regarding a proposed increase and explain the reasons for the
proposed increase. The public shall be allowed to speak and to ask questions. At the public
hearing, the school district must also provide and discuss information on the distribution
of its revenues by revenue source, and the distribution of its spending by program area.
 deleted text end

deleted text begin (e) If the initial hearing is not completed on its scheduled date, the taxing authority
must announce, prior to adjournment of the hearing, the date, time, and place for the
continuation of the hearing. The continuation hearing must be held at least five business
days but no more than 14 business days after the initial hearing. A continuation hearing
may not be held later than December 20 except as provided in paragraphs (f) and (g).
A continuation hearing must be held after 5:00 p.m. if scheduled on a day other than
Saturday. No continuation hearing may be held on a Sunday.
 deleted text end

deleted text begin (f) The governing body of a county shall hold its initial hearing on the first Thursday
in December each year, and may hold additional initial hearings on other dates before
December 20 if necessary for the convenience of county residents. If the county needs a
continuation of its hearing, the continuation hearing shall be held on the third Tuesday
in December. If the third Tuesday in December falls on December 21, the county's
continuation hearing shall be held on Monday, December 20.
 deleted text end

deleted text begin (g) The metropolitan special taxing districts shall hold a joint initial public hearing
on the first Wednesday of December. A continuation hearing, if necessary, shall be held on
the second Wednesday of December even if that second Wednesday is after December 10.
 deleted text end

deleted text begin (h) The county auditor shall provide for the coordination of initial and continuation
hearing dates for all school districts and cities within the county to prevent conflicts under
clauses (i) and (j).
 deleted text end

deleted text begin (i) By August 10, each school board and the board of the regional library district
shall certify to the county auditors of the counties in which the school district or regional
library district is located the dates on which it elects to hold its initial hearing and any
continuation hearing. If a school board or regional library district does not certify these
dates by August 10, the auditor will assign the initial and continuation hearing dates. The
dates elected or assigned must not conflict with the initial and continuation hearing dates
of the county or the metropolitan special taxing districts.
 deleted text end

deleted text begin (j) By August 20, the county auditor shall notify the clerks of the cities within the
county of the dates on which school districts and regional library districts have elected to
hold their initial and continuation hearings. At the time a city certifies its proposed levy
under subdivision 1 it shall certify the dates on which it elects to hold its initial hearing and
any continuation hearing. Until September 15, the first and second Mondays of December
are reserved for the use of the cities. If a city does not certify its hearing dates by
September 15, the auditor shall assign the initial and continuation hearing dates. The dates
elected or assigned for the initial hearing must not conflict with the initial hearing dates
of the county, metropolitan special taxing districts, regional library districts, or school
districts within which the city is located. To the extent possible, the dates of the city's
continuation hearing should not conflict with the continuation hearing dates of the county,
metropolitan special taxing districts, regional library districts, or school districts within
which the city is located. This paragraph does not apply to cities of 500 population or less.
 deleted text end

deleted text begin (k) The county initial hearing date and the city, metropolitan special taxing district,
regional library district, and school district initial hearing dates must be designated on
the notices required under subdivision 3. The continuation hearing dates need not be
stated on the notices.
 deleted text end

deleted text begin (l) At a subsequent hearing, each county, school district, city over 500 population,
and metropolitan special taxing district may amend its proposed property tax levy
and must adopt a final property tax levy. Each county, city over 500 population, and
metropolitan special taxing district may also amend its proposed budget and must adopt a
final budget at the subsequent hearing. The final property tax levy must be adopted prior
to adopting the final budget. A school district is not required to adopt its final budget at the
subsequent hearing. The subsequent hearing of a taxing authority must be held on a date
subsequent to the date of the taxing authority's initial public hearing. If a continuation
hearing is held, the subsequent hearing must be held either immediately following the
continuation hearing or on a date subsequent to the continuation hearing. The subsequent
hearing may be held at a regularly scheduled board or council meeting or at a special
meeting scheduled for the purposes of the subsequent hearing. The subsequent hearing
of a taxing authority does not have to be coordinated by the county auditor to prevent a
conflict with an initial hearing, a continuation hearing, or a subsequent hearing of any
other taxing authority. All subsequent hearings must be held prior to five working days
after December 20 of the levy year. The date, time, and place of the subsequent hearing
must be announced at the initial public hearing or at the continuation hearing.
 deleted text end

deleted text begin (m)deleted text end new text begin (a)new text end The property tax levy certified under section 275.07 by a city of any
population, county, metropolitan special taxing district, regional library district, or school
district must not exceed the proposed levy determined under subdivision 1, except by an
amount up to the sum of the following amounts:

(1) the amount of a school district levy whose voters approved a referendum to
increase taxes under section 123B.63, subdivision 3, or 126C.17, subdivision 9, after
the proposed levy was certified;

(2) the amount of a city or county levy approved by the voters after the proposed
levy was certified;

(3) the amount of a levy to pay principal and interest on bonds approved by the
voters under section 475.58 after the proposed levy was certified;

(4) the amount of a levy to pay costs due to a natural disaster occurring after the
proposed levy was certified, if that amount is approved by the commissioner of revenue
under subdivision 6a;

(5) the amount of a levy to pay tort judgments against a taxing authority that become
final after the proposed levy was certified, if the amount is approved by the commissioner
of revenue under subdivision 6a;

(6) the amount of an increase in levy limits certified to the taxing authority by the
commissioner of education or the commissioner of revenue after the proposed levy was
certified; and

(7) the amount required under section 126C.55.

deleted text begin (n)deleted text end new text begin (b)new text end This subdivision does not apply to towns and special taxing districts other
than regional library districts and metropolitan special taxing districts.

deleted text begin (o)deleted text end new text begin (c)new text end Notwithstanding the requirements of this section, the employer is required to
meet and negotiate over employee compensation as provided for in chapter 179A.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2010 and
thereafter.
 new text end

Sec. 20.

Laws 2008, chapter 363, article 2, section 46, subdivision 1, is amended to
read:


Subdivision 1.

Capital account transfers.

Notwithstanding any law to the contrary,
on June 30deleted text begin ,deleted text end new text begin ofnew text end 2008,new text begin 2009, and 2010,new text end a school district may transfer money from its
reserved for operating capital account to its undesignated balance in the general fund. The
amount transferred by any school district must not exceed $51 times the district's adjusted
marginal cost pupil units for new text begin the second preceding new text end fiscal year deleted text begin 2007deleted text end . This transfer new text begin annually
new text end may occur only after the school board has adopted a written resolution stating the amount
of the transfer and declaring that the school district's operating capital needs are being met.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 21. new text begin FUND TRANSFER; ST. ANTHONY-NEW BRIGHTON.
new text end

new text begin Notwithstanding Minnesota Statutes, section 123B.79 or 123B.80, on June 30, 2009,
Independent School District No. 282, St. Anthony-New Brighton, may permanently
transfer up to $400,000 from its reserved for operating capital account to its undesignated
general fund balance.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 22. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

new text begin The sums indicated in this section are
appropriated from the general fund to the Department of Education for the fiscal years
designated.
 new text end

new text begin Subd. 2. new text end

new text begin School lunch. new text end

new text begin For school lunch aid according to Minnesota Statutes,
section 124D.111, and Code of Federal Regulations, title 7, section 210.17:
 new text end

new text begin $
 new text end 		new text begin 12,688,000
 new text end 		new text begin .....
 new text end 		new text begin 2010
 new text end
new text begin $
 new text end 		new text begin 13,069,000
 new text end 		new text begin .....
 new text end 		new text begin 2011
 new text end

new text begin Subd. 3. new text end

new text begin School breakfast. new text end

new text begin For traditional school breakfast aid under Minnesota
Statutes, section 124D.1158:
 new text end

new text begin $
 new text end 		new text begin 4,978,000
 new text end 		new text begin .....
 new text end 		new text begin 2010
 new text end
new text begin $
 new text end 		new text begin 5,147,000
 new text end 		new text begin .....
 new text end 		new text begin 2011
 new text end

new text begin Subd. 4. new text end

new text begin Kindergarten milk. new text end

new text begin For kindergarten milk aid under Minnesota Statutes,
section 124D.118:
 new text end

new text begin $
 new text end 		new text begin 1,098,000
 new text end 		new text begin .....
 new text end 		new text begin 2010
 new text end
new text begin $
 new text end 		new text begin 1,120,000
 new text end 		new text begin .....
 new text end 		new text begin 2011
 new text end

new text begin Subd. 5. new text end

new text begin Summer school food service replacement aid. new text end

new text begin For summer food service
replacement aid under Minnesota Statutes, section 124D.119:
 new text end

new text begin $
 new text end 		new text begin 150,000
 new text end 		new text begin .....
 new text end 		new text begin 2010
 new text end
new text begin $
 new text end 		new text begin 150,000
 new text end 		new text begin .....
 new text end 		new text begin 2011
 new text end

Sec. 23. new text begin DEPARTMENT OF EDUCATION; LIBRARY APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

new text begin The sums indicated in this section are
appropriated from the general fund to the Department of Education for the fiscal years
designated.
 new text end

new text begin Subd. 2. new text end

new text begin Basic system support. new text end

new text begin For basic system support grants under Minnesota
Statutes, section 134.355:
 new text end

new text begin $
 new text end 		new text begin 11,264,000
 new text end 		new text begin .....
 new text end 		new text begin 2010
 new text end
new text begin $
 new text end 		new text begin 13,570,000
 new text end 		new text begin .....
 new text end 		new text begin 2011
 new text end

new text begin The 2010 appropriation includes $1,357,000 for 2009 and $9,907,000 for 2010.
 new text end

new text begin The 2011 appropriation includes $3,663,000 for 2010 and $9,907,000 for 2011.
 new text end

new text begin Subd. 3. new text end

new text begin Multicounty, multitype library systems. new text end

new text begin For grants under Minnesota
Statutes, sections 134.353 and 134.354, to multicounty, multitype library systems:
 new text end

new text begin $
 new text end 		new text begin 1,079,000
 new text end 		new text begin .....
 new text end 		new text begin 2010
 new text end
new text begin $
 new text end 		new text begin 1,300,000
 new text end 		new text begin .....
 new text end 		new text begin 2011
 new text end

new text begin The 2010 appropriation includes $130,000 for 2009 and $949,000 for 2010.
 new text end

new text begin The 2011 appropriation includes $351,000 for 2010 and $949,000 for 2011.
 new text end

new text begin Subd. 4. new text end

new text begin Electronic library for Minnesota. new text end

new text begin For statewide licenses to online
databases selected in cooperation with the Minnesota Office of Higher Education for
school media centers, public libraries, state government agency libraries, and public
or private college or university libraries:
 new text end

new text begin $
 new text end 		new text begin 900,000
 new text end 		new text begin .....
 new text end 		new text begin 2010
 new text end
new text begin $
 new text end 		new text begin 900,000
 new text end 		new text begin .....
 new text end 		new text begin 2011
 new text end

new text begin Any balance in the first year does not cancel but is available in the second year.
 new text end

new text begin Subd. 5. new text end

new text begin Regional library telecommunications aid. new text end

new text begin For regional library
telecommunications aid under Minnesota Statutes, section 134.355:
 new text end

new text begin $
 new text end 		new text begin 1,909,000
 new text end 		new text begin .....
 new text end 		new text begin 2010
 new text end
new text begin $
 new text end 		new text begin 2,300,000
 new text end 		new text begin .....
 new text end 		new text begin 2011
 new text end

new text begin The 2010 appropriation includes $230,000 for 2009 and $1,679,000 for 2010.
 new text end

new text begin The 2011 appropriation includes $621,000 for 2010 and $1,679,000 for 2011.
 new text end

Sec. 24. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2008, section 275.065, subdivisions 5a, 6b, 6c, 8, 9, and 10, new text end new text begin are
repealed.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2010 and
thereafter.
 new text end

ARTICLE 6

SELF-SUFFICIENCY AND LIFELONG LEARNING

Section 1.

Minnesota Statutes 2008, section 299A.297, is amended to read:


299A.297 OTHER DUTIES.

The commissioner of public safety, in consultation with the Chemical Abuse and
Violence Prevention Council, shall:

(1) provide information and assistance upon request to school preassessment teams
established under section 121A.26 deleted text begin and school and community advisory teams established
under section 121A.27deleted text end ;

(2) provide information and assistance upon request to the State Board of Pharmacy
with respect to the board's enforcement of chapter 152;

(3) cooperate with and provide information and assistance upon request to the
Alcohol and Other Drug Abuse Section in the Department of Human Services;

(4) coordinate the policy of the office with that of the Narcotic Enforcement Unit in
the Bureau of Criminal Apprehension; and

(5) coordinate the activities of the regional drug task forces, provide assistance and
information to them upon request, and assist in the formation of task forces in areas of
the state in which no task force operates.

Sec. 2. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2008, section 121A.27, new text end new text begin is repealed.
 new text end

ARTICLE 7

STATE AGENCIES

Section 1.

Minnesota Statutes 2008, section 125A.62, subdivision 8, is amended to
read:


Subd. 8.

Grantsnew text begin and giftsnew text end .

The board, through the chief administrators of the
academies, may apply for all competitive grants administered by agencies of the state and
other government or nongovernment sources. Application may not be made for grants over
which the board has discretion.new text begin Any funds received under this subdivision are appropriated
and dedicated for the purpose for which it is granted. The board must annually by February
1 report to the education policy and finance committees of the legislature the amount of
money it received under this subdivision and the purpose for which it was granted.
new text end

Sec. 2.

Minnesota Statutes 2008, section 127A.08, is amended by adding a subdivision
to read:


new text begin Subd. 5. new text end

new text begin Grants and gifts. new text end

new text begin The commissioner may apply for and receive grants
and gifts administered by agencies of the state and other government or nongovernment
sources. Any money received is hereby appropriated and dedicated for the purpose for
which it is granted. The commissioner annually by February 1 must report to the education
policy and finance committees of the legislature the amount of money it received under
this subdivision and the purpose for which it was granted.
 new text end

Sec. 3. new text begin APPROPRIATIONS; DEPARTMENT OF EDUCATION.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

new text begin Unless otherwise indicated, the sums
indicated in this section are appropriated from the general fund to the Department of
Education for the fiscal years designated.
 new text end

new text begin Subd. 2. new text end

new text begin Department. new text end

new text begin (a) For the Department of Education:
 new text end

new text begin $
 new text end 		new text begin 21,693,000
 new text end 		new text begin .....
 new text end 		new text begin 2010
 new text end
new text begin $
 new text end 		new text begin 21,693,000
 new text end 		new text begin .....
 new text end 		new text begin 2011
 new text end

new text begin Any balance in the first year does not cancel but is available in the second year.
 new text end

new text begin (b) $41,000 each year is for the Minnesota Academy of Science.
 new text end

new text begin (c) $632,000 in fiscal year 2010 and $632,000 in fiscal year 2011 are for the Board
of Teaching.
 new text end

new text begin (d) $171,000 in fiscal year 2010 and $171,000 in fiscal year 2011 are for the Board
of School Administrators.
 new text end

new text begin (e) $40,000 each year is for an early hearing loss intervention coordinator under
Minnesota Statutes, section 125A.63, subdivision 5. If the department expends federal
funds to employ a hearing loss coordinator under Minnesota Statutes, section 125.63,
subdivision 5, then the appropriation under this paragraph is reallocated for purposes of
employing a world languages coordinator.
 new text end

new text begin (f) $260,000 each year is for the Minnesota Children's Museum.
 new text end

new text begin (g) $50,000 each year is for the Duluth Children's Museum.
 new text end

new text begin (h) The expenditures of federal grants and aids as shown in the biennial budget
document and its supplements are approved and appropriated and shall be spent as
indicated, with the exception of state incentive grants, education technology state grants,
teacher incentive funds, and statewide data system funds as outlined in the supplemental
federal funds submission dated March 25, 2009.
 new text end

new text begin Subd. 3. new text end

new text begin Board of Teaching; licensure by portfolio. new text end

new text begin For the Board of Teaching
for licensure by portfolio:
 new text end

new text begin $
 new text end 		new text begin 30,000
 new text end 		new text begin .....
 new text end 		new text begin 2010
 new text end
new text begin $
 new text end 		new text begin 30,000
 new text end 		new text begin .....
 new text end 		new text begin 2011
 new text end

new text begin This appropriation is from the educator licensure portfolio account of the special
revenue fund.
 new text end

Sec. 4. new text begin APPROPRIATIONS; MINNESOTA STATE ACADEMIES.
new text end

new text begin The sums indicated in this section are appropriated from the general fund to the
Minnesota State Academies for the Deaf and the Blind for the fiscal years designated:
 new text end

new text begin $
 new text end 		new text begin 11,912,000
 new text end 		new text begin .....
 new text end 		new text begin 2010
 new text end
new text begin $
 new text end 		new text begin 11,912,000
 new text end 		new text begin .....
 new text end 		new text begin 2011
 new text end

new text begin Any balance in the first year does not cancel but is available in the second year.
 new text end

Sec. 5. new text begin APPROPRIATIONS; PERPICH CENTER FOR ARTS EDUCATION.
new text end

new text begin The sums in this section are appropriated from the general fund to the Perpich
Center for Arts Education for the fiscal years designated:
 new text end

new text begin $
 new text end 		new text begin 7,087,000
 new text end 		new text begin .....
 new text end 		new text begin 2010
 new text end
new text begin $
 new text end 		new text begin 7,087,000
 new text end 		new text begin .....
 new text end 		new text begin 2011
 new text end

new text begin Any balance in the first year does not cancel but is available in the second year.
 new text end

ARTICLE 8

PUPIL TRANSPORTATION

Section 1.

Minnesota Statutes 2008, section 123B.92, subdivision 1, is amended to read:


Subdivision 1.

Definitions.

For purposes of this section and section 125A.76, the
terms defined in this subdivision have the meanings given to them.

(a) "Actual expenditure per pupil transported in the regular and excess transportation
categories" means the quotient obtained by dividing:

(1) the sum of:

(i) all expenditures for transportation in the regular category, as defined in paragraph
(b), clause (1), and the excess category, as defined in paragraph (b), clause (2), plus

(ii) an amount equal to one year's depreciation on the district's school bus fleet
and mobile units computed on a straight line basis at the rate of 15 percent per year for
districts operating a program under section 124D.128 for grades 1 to 12 for all students in
the district and 12-1/2 percent per year for other districts of the cost of the fleet, plus

(iii) an amount equal to one year's depreciation on the district's type deleted text begin three school
busesdeleted text end new text begin III vehiclesnew text end , as defined in section 169.011, subdivision 71, deleted text begin clause (5),deleted text end which must be
used a majority of the time for pupil transportation purposes, computed on a straight line
basis at the rate of 20 percent per year of the cost of the type three school buses by:

(2) the number of pupils eligible for transportation in the regular category, as defined
in paragraph (b), clause (1), and the excess category, as defined in paragraph (b), clause (2).

(b) "Transportation category" means a category of transportation service provided to
pupils as follows:

(1) Regular transportation is:

(i) transportation to and from school during the regular school year for resident
elementary pupils residing one mile or more from the public or nonpublic school they
attend, and resident secondary pupils residing two miles or more from the public
or nonpublic school they attend, excluding desegregation transportation and noon
kindergarten transportation; but with respect to transportation of pupils to and from
nonpublic schools, only to the extent permitted by sections 123B.84 to 123B.87;

(ii) transportation of resident pupils to and from language immersion programs;

(iii) transportation of a pupil who is a custodial parent and that pupil's child between
the pupil's home and the child care provider and between the provider and the school, if
the home and provider are within the attendance area of the school;

(iv) transportation to and from or board and lodging in another district, of resident
pupils of a district without a secondary school; and

(v) transportation to and from school during the regular school year required under
subdivision 3 for nonresident elementary pupils when the distance from the attendance
area border to the public school is one mile or more, and for nonresident secondary pupils
when the distance from the attendance area border to the public school is two miles or
more, excluding desegregation transportation and noon kindergarten transportation.

For the purposes of this paragraph, a district may designate a licensed day care
facility, school day care facility, respite care facility, the residence of a relative, or the
residence of a person chosen by the pupil's parent or guardian as the home of a pupil for
part or all of the day, if requested by the pupil's parent or guardian, and if that facility or
residence is within the attendance area of the school the pupil attends.

(2) Excess transportation is:

(i) transportation to and from school during the regular school year for resident
secondary pupils residing at least one mile but less than two miles from the public or
nonpublic school they attend, and transportation to and from school for resident pupils
residing less than one mile from school who are transported because of extraordinary
traffic, drug, or crime hazards; and

(ii) transportation to and from school during the regular school year required under
subdivision 3 for nonresident secondary pupils when the distance from the attendance area
border to the school is at least one mile but less than two miles from the public school
they attend, and for nonresident pupils when the distance from the attendance area border
to the school is less than one mile from the school and who are transported because of
extraordinary traffic, drug, or crime hazards.

(3) Desegregation transportation is transportation within and outside of the district
during the regular school year of pupils to and from schools located outside their normal
attendance areas under a plan for desegregation mandated by the commissioner or under
court order.

(4) "Transportation services for pupils with disabilities" is:

(i) transportation of pupils with disabilities who cannot be transported on a regular
school bus between home or a respite care facility and school;

(ii) necessary transportation of pupils with disabilities from home or from school to
other buildings, including centers such as developmental achievement centers, hospitals,
and treatment centers where special instruction or services required by sections 125A.03
to 125A.24, 125A.26 to 125A.48, and 125A.65 are provided, within or outside the district
where services are provided;

(iii) necessary transportation for resident pupils with disabilities required by sections
125A.12, and 125A.26 to 125A.48;

(iv) board and lodging for pupils with disabilities in a district maintaining special
classes;

(v) transportation from one educational facility to another within the district for
resident pupils enrolled on a shared-time basis in educational programs, and necessary
transportation required by sections 125A.18, and 125A.26 to 125A.48, for resident pupils
with disabilities who are provided special instruction and services on a shared-time basis
or if resident pupils are not transported, the costs of necessary travel between public
and private schools or neutral instructional sites by essential personnel employed by the
district's program for children with a disability;

(vi) transportation for resident pupils with disabilities to and from board and lodging
facilities when the pupil is boarded and lodged for educational purposes; deleted text begin and
deleted text end

(vii) new text begin transportation of pupils for a curricular field trip activity on a school bus
equipped with a power lift when the power lift is required by a student's disability or
section 504 plan; and
new text end

new text begin (viii) new text end services described in clauses (i) to deleted text begin (vi)deleted text end new text begin (vii)new text end , when provided for pupils with
disabilities in conjunction with a summer instructional program that relates to the pupil's
individual education plan or in conjunction with a learning year program established
under section 124D.128.

For purposes of computing special education initial aid under section 125A.76,
subdivision 2, the cost of providing transportation for children with disabilities includes
(A) the additional cost of transporting a homeless student from a temporary nonshelter
home in another district to the school of origin, or a formerly homeless student from a
permanent home in another district to the school of origin but only through the end of the
academic year; and (B) depreciation on district-owned school buses purchased after July 1,
2005, and used primarily for transportation of pupils with disabilities, calculated according
to paragraph (a), clauses (ii) and (iii). Depreciation costs included in the disabled
transportation category must be excluded in calculating the actual expenditure per pupil
transported in the regular and excess transportation categories according to paragraph (a).

(5) "Nonpublic nonregular transportation" is:

(i) transportation from one educational facility to another within the district for
resident pupils enrolled on a shared-time basis in educational programs, excluding
transportation for nonpublic pupils with disabilities under clause (4);

(ii) transportation within district boundaries between a nonpublic school and a
public school or a neutral site for nonpublic school pupils who are provided pupil support
services pursuant to section 123B.44; and

(iii) late transportation home from school or between schools within a district for
nonpublic school pupils involved in after-school activities.

(c) "Mobile unit" means a vehicle or trailer designed to provide facilities for
educational programs and services, including diagnostic testing, guidance and counseling
services, and health services. A mobile unit located off nonpublic school premises is a
neutral site as defined in section 123B.41, subdivision 13.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2010.
 new text end

Sec. 2.

Minnesota Statutes 2008, section 123B.92, subdivision 5, is amended to read:


Subd. 5.

District reports.

(a) Each district must report data to the department as
required by the department to account for transportation expenditures.

(b) Salaries and fringe benefits of district employees whose primary duties are
other than transportation, including central office administrators and staff, building
administrators and staff, teachers, social workers, school nurses, and instructional aides,
must not be included in a district's transportation expenditures, except that a district may
include salaries and benefits according to paragraph (c) for (1) an employee designated
as the district transportation director, (2) an employee providing direct support to the
transportation director, or (3) an employee providing direct transportation services such as
a bus driver or bus aide.

(c) Salaries and fringe benefits of the district employees listed in paragraph (b),
clauses (1), (2), and (3), who work part time in transportation and part time in other areas
must not be included in a district's transportation expenditures unless the district maintains
documentation of the employee's time spent on pupil transportation matters in the form
and manner prescribed by the department.

(d) Pupil transportation expenditures, excluding expenditures for capital outlay,
leased buses, student board and lodging, crossing guards, and aides on buses, must
be allocated among transportation categories based on cost-per-mile, cost-per-student,
cost-per-hour, or cost-per-route, regardless of whether the transportation services are
provided on district-owned or contractor-owned school buses. Expenditures for school
bus driver salaries and fringe benefits may either be directly charged to the appropriate
transportation category or may be allocated among transportation categories based
on cost-per-mile, cost-per-student, cost-per-hour, or cost-per-route. Expenditures
by private contractors or individuals who provide transportation exclusively in one
transportation category must be charged directly to the appropriate transportation category.
Transportation services provided by contractor-owned school bus companies incorporated
under different names but owned by the same individual or group of individuals must be
treated as the same company for cost allocation purposes.

new text begin (e) Notwithstanding paragraph (d), districts contracting for transportation services
are exempt from the standard cost allocation method for authorized and nonauthorized
transportation categories if the district: (1) bids its contracts separately for authorized
and nonauthorized transportation categories and for special transportation separate from
regular and excess transportation; (2) receives bids or quotes from more than one vendor
for these transportation categories; and (3) the district's cost-per-mile, cost-per-hour, or
cost-per-route does not vary more than ten percent among categories, excluding salaries
and fringe benefits of bus aides. If the costs reported by the district for contractor-owned
operations vary by more than ten percent among categories, the department shall require
the district to reallocate its transportation costs, excluding salaries and fringe benefits of
bus aides, among all categories.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2010.
 new text end

Sec. 3.

Minnesota Statutes 2008, section 169.011, subdivision 71, is amended to read:


Subd. 71.

School bus.

new text begin (a) new text end "School bus" means a motor vehicle used to transport
pupils to or from a school defined in section 120A.22, or to or from school-related
activities, by the school or a school district, or by someone under an agreement with the
school or a school district. A school bus does not include a motor vehicle transporting
children to or from school for which parents or guardians receive direct compensation
from a school district, a motor coach operating under charter carrier authority, a transit
bus providing services as defined in section 174.22, subdivision 7, deleted text begin a multifunction school
activity bus as defined by federal motor vehicle safety standards,deleted text end or a vehicle otherwise
qualifying as a type III vehicle under deleted text begin paragraph (5)deleted text end new text begin clause (6)new text end , when the vehicle is properly
registered and insured and being driven by an employee or agent of a school district for
nonscheduled or nonregular transportation.

new text begin (b) new text end A school bus may be type A, type B, type C, or type D, new text begin multifunction school
activity bus, new text end or type III as deleted text begin follows:deleted text end new text begin provided in paragraphs (c) to (h).new text end

deleted text begin (1)deleted text end new text begin (c)new text end A "type A school bus" is a van conversion or bus constructed utilizing a
cutaway front section vehicle with a left-side driver's door. deleted text begin The entrance door is behind the
front wheels.deleted text end This definition includes two classifications: type A-I, with a gross vehicle
weight rating (GVWR) less than or equal to deleted text begin 10,000deleted text end new text begin 14,500new text end pounds; and type A-II, with a
GVWR greater than deleted text begin 10,000deleted text end new text begin 14,500new text end poundsnew text begin and less than or equal to 21,500 poundsnew text end .

deleted text begin (2)deleted text end new text begin (d)new text end A "type B school bus" is constructed utilizing a stripped chassis. The
entrance door is behind the front wheels. This definition includes two classifications: type
B-I, with a GVWR less than or equal to 10,000 pounds; and type B-II, with a GVWR
greater than 10,000 pounds.

deleted text begin (3)deleted text end new text begin (e)new text end A "type C school bus" is constructed utilizing a chassis with a hood and front
fender assembly. The entrance door is behind the front wheels.new text begin A "type C school bus" also
includes a cutaway truck chassis or truck chassis with cab, with or without a left side door,
and with a GVWR greater than 21,500 pounds.
new text end

deleted text begin (4)deleted text end new text begin (f)new text end A "type D school bus" is constructed utilizing a stripped chassis. The entrance
door is ahead of the front wheels.

deleted text begin (5)deleted text end new text begin (g) A "multifunction school activity bus" is a school bus that meets the definition
of a multifunction school activity bus in Code of Federal Regulations, title 49, section
571.3. A vehicle that meets the definition of a type III vehicle is not a multifunction
school activity bus.
new text end

new text begin (h) new text end new text begin A "new text end Type III deleted text begin vehicles aredeleted text end new text begin vehicle" isnew text end restricted to passenger cars, station wagons,
vans, and buses having a maximum manufacturer's rated seating capacity of ten or fewer
people, including the driver, and a gross vehicle weight rating of 10,000 pounds or
less. deleted text begin In this subdivision, "gross vehicle weight rating" means the value specified by the
manufacturer as the loaded weight of a single vehicle.deleted text end A "type III vehicle" must not be
outwardly equipped and identified as a type A, B, C, or D school bus or type A, B, C, or D
Head Start bus. A van or bus converted to a seating capacity of ten or fewer and placed in
service on or after August 1, 1999, must have been originally manufactured to comply
with the passenger safety standards.

new text begin (i) In this subdivision, "gross vehicle weight rating" means the value specified by
the manufacturer as the loaded weight of a single vehicle.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2009.
 new text end

Sec. 4.

Minnesota Statutes 2008, section 169.443, subdivision 9, is amended to read:


Subd. 9.

Personal cellular phone call prohibition.

(a) As used in this subdivision,
"school bus" has the meaning given in section 169.011, subdivision 71. In addition, the
term includes type III vehicles as deleted text begin describeddeleted text end new text begin definednew text end in section 169.011, subdivision 71,
deleted text begin clause (5),deleted text end when driven by employees or agents of school districts.

(b) A school bus driver may not operate a school bus while communicating over, or
otherwise operating, a cellular phone for personal reasons, whether handheld or hands
free, when the vehicle is in motion.

Sec. 5.

Minnesota Statutes 2008, section 169.4501, subdivision 1, is amended to read:


Subdivision 1.

National standards adopted.

Except as provided in sections
169.4502 and 169.4503, the construction, design, equipment, and color of types A, B, C,
D deleted text begin and multifunctionaldeleted text end new text begin school buses and multifunctionnew text end school activity deleted text begin bus schooldeleted text end buses
used for the transportation of school children shall meet the requirements of the "bus
chassis standards" and "bus body standards" in the 2005 edition of the "National School
Transportation Specifications and Procedures" adopted by the National Congress on
School Transportation. Except as provided in section 169.4504, the construction, design,
and equipment of types A, B, C, D deleted text begin and multifunctionaldeleted text end new text begin school buses and multifunctionnew text end
school activity deleted text begin bus schooldeleted text end buses used for the transportation of students with disabilities
also shall meet the requirements of the "specially equipped school bus standards" in the
2005 National School Transportation Specifications and Procedures. The "bus chassis
standards," "bus body standards," and "specially equipped school bus standards" sections
of the 2005 edition of the "National School Transportation Specifications and Procedures"
are incorporated by reference in this chapter.

Sec. 6.

Minnesota Statutes 2008, section 169.4503, subdivision 20, is amended to read:


Subd. 20.

Seat and crash barriers.

(a) All restraining barriers and passenger seats
shall be covered with a material that has fire retardant or fire block characteristics.

(b) All seats must have a minimum cushion depth of 15 inches and a seat back
height of at least 20 inches above the seating reference pointnew text begin , and beginning October 21,
2009, must also conform to the Federal Motor Vehicle Safety Standard in Code of Federal
Regulations, title 49, section 571.222new text end .

Sec. 7.

Minnesota Statutes 2008, section 169.4503, is amended by adding a subdivision
to read:


new text begin Subd. 27. new text end

new text begin Tailpipe. new text end

new text begin (a) The tailpipe must not extend more than two inches beyond
the perimeter of the body for a side-exit pipe or beyond the bumper for a rear-exit pipe.
 new text end

new text begin (b) The tailpipe must exit either in the rear of the vehicle or to the left side of the bus
in front of or behind the rear drive axle. The tailpipe exit location on all type A-I or B-I
buses must be in accordance with the manufacturer's standards. The tailpipe must not exit
beneath any fuel filler location or beneath any emergency door.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
retroactive to December 31, 2007.
 new text end

Sec. 8.

Minnesota Statutes 2008, section 169.454, subdivision 13, is amended to read:


Subd. 13.

Exemption.

When a vehicle otherwise qualifying as a type III vehicle
under section 169.011, subdivision 71, deleted text begin clause (5),deleted text end whether owned and operated by a
school district or privately owned and operated, is used to transport school children in a
nonscheduled situation, it shall be exempt from the vehicle requirements of this section
and the licensing requirements of section 171.321, if the vehicle is properly registered
and insured and operated by an employee or agent of a school district with a valid driver's
license.

Sec. 9.

Minnesota Statutes 2008, section 169A.03, subdivision 23, is amended to read:


Subd. 23.

School bus.

"School bus" has the meaning given in section 169.011,
subdivision 71. In addition, the term includes type III vehicles as deleted text begin describeddeleted text end new text begin definednew text end in
section 169.011, subdivision 71, deleted text begin clause (5),deleted text end when driven by employees or agents of school
districts.

Sec. 10.

Minnesota Statutes 2008, section 171.01, subdivision 22, is amended to read:


Subd. 22.

Commercial motor vehicle.

"Commercial motor vehicle" means a motor
vehicle or combination of motor vehicles used to transport passengers or property if
the motor vehicle:

(1) has a gross vehicle weight of more than 26,000 pounds;

(2) has a towed unit with a gross vehicle weight of more than 10,000 pounds and the
combination of vehicles has a combined gross vehicle weight of more than 26,000 pounds;

(3) is a bus;

(4) is of any size and is used in the transportation of hazardous materials that are
required to be placarded under Code of Federal Regulations, title 49, parts 100-185; or

(5) is outwardly equipped and identified as a school bus, except for type III vehicles
defined in section 169.011, subdivision 71deleted text begin , clause (5)deleted text end .

Sec. 11.

Minnesota Statutes 2008, section 171.02, subdivision 2, is amended to read:


Subd. 2.

Driver's license classifications, endorsements, exemptions.

(a) Drivers'
licenses are classified according to the types of vehicles that may be driven by the holder
of each type or class of license. The commissioner may, as appropriate, subdivide the
classes listed in this subdivision and issue licenses classified accordingly.

(b) Except as provided in paragraph (c), clauses (1) and (2), and subdivision 2a, no
class of license is valid to operate a motorcycle, school bus, tank vehicle, double-trailer
or triple-trailer combination, vehicle transporting hazardous materials, or bus, unless
so endorsed. There are four general classes of licenses as described in paragraphs (c)
through (f).

(c) Class D drivers' licenses are valid for:

(1) operating all farm trucks if the farm truck is:

(i) controlled and operated by a farmer, including operation by an immediate family
member or an employee of the farmer;

(ii) used to transport agricultural products, farm machinery, or farm supplies,
including hazardous materials, to or from a farm;

(iii) not used in the operations of a common or contract motor carrier as governed by
Code of Federal Regulations, title 49, part 365; and

(iv) used within 150 miles of the farm;

(2) notwithstanding paragraph (b), operating an authorized emergency vehicle, as
defined in section 169.011, subdivision 3, whether or not in excess of 26,000 pounds
gross vehicle weight;

(3) operating a recreational vehicle as defined in section 168.002, subdivision 27,
that is operated for personal use;

(4) operating all single-unit vehicles except vehicles with a gross vehicle weight of
more than 26,000 pounds, vehicles designed to carry more than 15 passengers including
the driver, and vehicles that carry hazardous materials;

(5) notwithstanding paragraph (d), operating a type A school bus or a deleted text begin multifunctionaldeleted text end new text begin
multifunctionnew text end school activity bus without a school bus endorsement ifdeleted text begin :
deleted text end

deleted text begin (i) the bus has a gross vehicle weight of 10,000 pounds or less;
 deleted text end

deleted text begin (ii) the bus is designed to transport 15 or fewer passengers, including the driver; and
 deleted text end

deleted text begin (iii)deleted text end the requirements of subdivision 2a are satisfied, as determined by the
commissioner;

(6) operating any vehicle or combination of vehicles when operated by a licensed
peace officer while on duty; and

(7) towing vehicles if:

(i) the towed vehicles have a gross vehicle weight of 10,000 pounds or less; or

(ii) the towed vehicles have a gross vehicle weight of more than 10,000 pounds and
the combination of vehicles has a gross vehicle weight of 26,000 pounds or less.

(d) Class C drivers' licenses are valid for:

(1) operating class D motor vehicles;

(2) with a hazardous materials endorsement, operating class D vehicles to transport
hazardous materials;

(3) with a passenger endorsement, operating buses; and

(4) with a passenger endorsement and school bus endorsement, operating school
buses.

(e) Class B drivers' licenses are valid for:

(1) operating all class C motor vehicles, class D motor vehicles, and all other
single-unit motor vehicles including, with a passenger endorsement, buses; and

(2) towing only vehicles with a gross vehicle weight of 10,000 pounds or less.

(f) Class A drivers' licenses are valid for operating any vehicle or combination of
vehicles.

Sec. 12.

Minnesota Statutes 2008, section 171.02, subdivision 2a, is amended to read:


Subd. 2a.

Exception for certain school bus drivers.

Notwithstanding subdivision
2, paragraph deleted text begin (c)deleted text end new text begin (b)new text end , the holder of a class D driver's license, without a school bus
endorsement, may operate a type A school bus deleted text begin described in subdivision 2, paragraph (b),deleted text end
new text begin or a multifunction school activity bus new text end under the following conditions:

(a) The operator is an employee of the entity that owns, leases, or contracts for the
school bus and is not solely hired to provide transportation services under this subdivision.

(b) The operator drives the school bus only from points of origin to points of
destination, not including home-to-school trips to pick up or drop off students.

(c) The operator is prohibited from using the eight-light system. Violation of this
paragraph is a misdemeanor.

(d) The operator's employer has adopted and implemented a policy that provides for
annual training and certification of the operator in:

(1) safe operation of the type of school bus the operator will be driving;

(2) understanding student behavior, including issues relating to students with
disabilities;

(3) encouraging orderly conduct of students on the bus and handling incidents of
misconduct appropriately;

(4) knowing and understanding relevant laws, rules of the road, and local school
bus safety policies;

(5) handling emergency situations; and

(6) safe loading and unloading of students.

(e) A background check or background investigation of the operator has been
conducted that meets the requirements under section 122A.18, subdivision 8, or 123B.03
for teachers; section 144.057 or chapter 245C for day care employees; or section 171.321,
subdivision 3, for all other persons operating a deleted text begin type Adeleted text end school bus under this subdivision.

(f) Operators shall submit to a physical examination as required by section 171.321,
subdivision 2.

(g) The operator's driver's license is verified annually by the entity that owns, leases,
or contracts for the school bus.

(h) A person who sustains a conviction, as defined under section 609.02, of violating
section 169A.25, 169A.26, 169A.27, 169A.31, 169A.51, or 169A.52, or a similar statute
or ordinance of another state is precluded from operating a school bus for five years
from the date of conviction.

(i) A person who has ever been convicted of a disqualifying offense as defined in
section 171.3215, subdivision 1, paragraph (c), may not operate a school bus under this
subdivision.

(j) A person who sustains a conviction, as defined under section 609.02, of a fourth
moving offense in violation of chapter 169 is precluded from operating a school bus for
one year from the date of the last conviction.

(k) Students riding the school bus must have training required under section
123B.90, subdivision 2.

(l) An operator must be trained in the proper use of child safety restraints as set
forth in the National Highway Traffic Safety Administration's "Guideline for the Safe
Transportation of Pre-school Age Children in School Buses," if child safety restraints are
used by the passengers.

(m) Annual certification of the requirements listed in this subdivision must be
maintained under separate file at the business location for each operator licensed under
this subdivision and subdivision 2, paragraph (b), clause (5). The business manager,
school board, governing body of a nonpublic school, or any other entity that owns,
leases, or contracts for the school bus operating under this subdivision is responsible
for maintaining these files for inspection.

(n) The school bus must bear a current certificate of inspection issued under section
169.451.

(o) new text begin If new text end the word "School" new text begin appears new text end on the front and rear of the busnew text begin , the word "School"new text end
must be covered by a sign that reads "Activities" when the bus is being operated under
authority of this subdivision.

new text begin (p) The type A-I school bus or multifunction school activity bus is designed to
transport 15 or fewer passengers, including the driver.
 new text end

new text begin (q) The school bus has a gross vehicle weight rating of 14,500 pounds or less.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2010.
 new text end

Sec. 13.

Minnesota Statutes 2008, section 171.02, subdivision 2b, is amended to read:


Subd. 2b.

Exception for type III vehicle drivers.

(a) Notwithstanding subdivision
2, deleted text begin paragraph (c),deleted text end the holder of a class new text begin A, B, C, or new text end D driver's license, without a school bus
endorsement, may operate a type III vehicle described in section 169.011, subdivision 71,
clause (5), under the conditions in paragraphs (b) through deleted text begin (n)deleted text end new text begin (o)new text end .

(b) The operator is an employee of the entity that owns, leases, or contracts for
the school bus.

(c) The operator's employer has adopted and implemented a policy that provides for
annual training and certification of the operator in:

(1) safe operation of a type III vehicle;

(2) understanding student behavior, including issues relating to students with
disabilities;

(3) encouraging orderly conduct of students on the bus and handling incidents of
misconduct appropriately;

(4) knowing and understanding relevant laws, rules of the road, and local school
bus safety policies;

(5) handling emergency situations;

(6) proper use of seat belts and child safety restraints;

(7) performance of pretrip vehicle inspections; deleted text begin and
deleted text end

(8) safe loading and unloading of students, including, but not limited to:

(i) utilizing a safe location for loading and unloading students at the curb, on the
nontraffic side of the roadway, or at off-street loading areas, driveways, yards, and other
areas to enable the student to avoid hazardous conditions;

(ii) refraining from loading and unloading students in a vehicular traffic lane, on the
shoulder, in a designated turn lane, or a lane adjacent to a designated turn lane;

(iii) avoiding a loading or unloading location that would require a pupil to cross a
road, or ensuring that the driver or an aide personally escort the pupil across the road if
it is not reasonably feasible to avoid such a location; and

(iv) placing the type III vehicle in "park" during loading and unloadingnew text begin ; and
new text end

new text begin (9) compliance with paragraph (k), concerning reporting certain convictions to the
employer within ten days of the date of convictionnew text end .

(d) A background check or background investigation of the operator has been
conducted that meets the requirements under section 122A.18, subdivision 8, or 123B.03
for school district employees; section 144.057 or chapter 245C for day care employees;
or section 171.321, subdivision 3, for all other persons operating a type A or type III
vehicle under this subdivision.

(e) Operators shall submit to a physical examination as required by section 171.321,
subdivision 2.

(f) The operator's employer deleted text begin has adopted and implemented a policy that provides for
mandatorydeleted text end new text begin requires preemployment new text end drug and alcohol testing of applicants for operator
positions deleted text begin anddeleted text end new text begin .new text end Current operatorsdeleted text begin , in accordancedeleted text end new text begin must comply new text end withnew text begin the employer's policy
under new text end section 181.951, subdivisions 2, 4, and 5.

(g) The operator's driver's license is verified annually by the entity that owns, leases,
or contracts for the school bus.

(h) A person who sustains a conviction, as defined under section 609.02, of violating
section 169A.25, 169A.26, 169A.27, or 169A.31, or whose driver's license is revoked
under sections 169A.50 to 169A.53 of the implied consent law, or who is convicted of
new text begin violating new text end or deleted text begin has theirdeleted text end new text begin whose new text end driver's license new text begin is new text end revoked under a similar statute or ordinance
of another state, is precluded from operating a type III vehicle for five years from the
date of conviction.

(i) A person who has ever been convicted of a disqualifying offense as defined in
section 171.3215, subdivision 1, paragraph (c), may not operate a type III vehicle under
this subdivision.

(j) A person who sustains a conviction, as defined under section 609.02, of a moving
offense in violation of chapter 169 within three years of the first of three other moving
offenses is precluded from operating a type III vehicle for one year from the date of
the last conviction.

(k) An operator who sustains a conviction as described in paragraph (h), (i), or (j)
while employed by the entity that owns, leases, or contracts for the school bus, shall report
the conviction to the employer within ten days of the date of the conviction.

(l) Students riding the type III vehicle must have training required under section
123B.90, subdivision 2.

(m) Documentation of meeting the requirements listed in this subdivision must be
maintained under separate file at the business location for each type III vehicle operator.
The business manager, school board, governing body of a nonpublic school, or any
other entity that owns, leases, or contracts for the type III vehicle operating under this
subdivision is responsible for maintaining these files for inspection.

(n) The type III vehicle must bear a current certificate of inspection issued under
section 169.451.

(o) deleted text begin An operator employed by a school or school district, whose normal duties do not
include operating a type III vehicle, who holds a class D driver's license without a school
bus endorsement, may operate a type III vehicle and is exempt from paragraphs (d), (e),
(f), (g), and (k)deleted text end new text begin An employee of a school or of a school district, who is not employed for
the sole purpose of operating a type III vehicle, is exempt from paragraphs (e) and (f)new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 14.

Minnesota Statutes 2008, section 171.321, subdivision 1, is amended to read:


Subdivision 1.

Endorsement.

No person shall drive a school bus when transporting
school children to or from school or upon a school-related trip or activity without having a
valid class A, class B, or class C driver's license with a school bus endorsement except
that a person possessing a valid driver's license but not a school bus endorsement may
drive a type III vehiclenew text begin or a school bus, subject to the requirements of section 171.02,
subdivisions 2, 2a, and 2bnew text end .

Sec. 15.

Minnesota Statutes 2008, section 171.321, subdivision 4, is amended to read:


Subd. 4.

Training.

(a) No person shall drive a class A, B, C, or D school bus when
transporting school children to or from school or upon a school-related trip or activity
without having demonstrated sufficient skills and knowledge to transport students in
a safe and legal manner.

(b) A bus driver must have training or experience that allows the driver to meet at
least the following competencies:

(1) safely operate the type of school bus the driver will be driving;

(2) understand student behavior, including issues relating to students with
disabilities;

(3) encourage orderly conduct of students on the bus and handle incidents of
misconduct appropriately;

(4) know and understand relevant laws, rules of the road, and local school bus
safety policies;

(5) handle emergency situations; and

(6) safely load and unload students.

(c) The commissioner of public safety shall develop a comprehensive model
school bus driver training program and model assessments for school bus driver training
competencies, which are not subject to chapter 14. A school district, nonpublic school, or
private contractor may use alternative assessments for bus driver training competencies
with the approval of the commissioner of public safety. A driver may receive at least eight
hours of school bus in-service training any year, as an alternative to being assessed for bus
driver competencies after the initial year of being assessed for bus driver competencies.
The employer shall keep the assessment or a record of the in-service training for the
current period available for inspection by representatives of the commissioner.

new text begin (d) A school district, nonpublic school, or private contractor shall provide in-service
training annually to each school bus driver.
 new text end

Sec. 16.

Minnesota Statutes 2008, section 171.321, subdivision 5, is amended to read:


Subd. 5.

Annual evaluation and license verification.

(a) deleted text begin A school district,
nonpublic school, or private contractor shall provide in-service training annually to each
school bus driver.deleted text end new text begin For purposes of this section, "annually" means at least once every
380 days from the initial or previous evaluation and at least once every 380 days from
the initial or previous license verification.
new text end

(b) A school district, nonpublic school, or private contractor shall annually verify
new text begin with the National Driver Register or with the Department of Public Safety new text end the validity of
the driver's license of each employee who regularly transports students for the district innew text begin :
(1) new text end a type A school bus, a type B school bus, a type C school bus, or type D school busdeleted text begin ,deleted text end new text begin ; (2)
a multifunction school activity bus; new text end or deleted text begin regularly transports students for the district indeleted text end new text begin (3) new text end a
type III vehicle deleted text begin with the National Driver Register or with the Department of Public Safetydeleted text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2010.
 new text end

ARTICLE 9

SCHOOL FINANCE SYSTEM CHANGES

Section 1.

Minnesota Statutes 2008, section 123B.53, subdivision 5, is amended to read:


Subd. 5.

Equalized debt service levy.

(a) The equalized debt service levy of a
district equals the sum of the first tier equalized debt service levy and the second tier
equalized debt service levy.

(b) A district's first tier equalized debt service levy equals the district's first tier debt
service equalization revenue times the lesser of one or the ratio of:

(1) the quotient derived by dividing the adjusted net tax capacity of the district for
the year before the year the levy is certified by the adjusted pupil units in the district for
the school year ending in the year prior to the year the levy is certified; to

(2) deleted text begin $3,200deleted text end new text begin 100 percent of the statewide adjusted net tax capacity equalizing factornew text end .

(c) A district's second tier equalized debt service levy equals the district's second tier
debt service equalization revenue times the lesser of one or the ratio of:

(1) the quotient derived by dividing the adjusted net tax capacity of the district for
the year before the year the levy is certified by the adjusted pupil units in the district for
the school year ending in the year prior to the year the levy is certified; to

(2) deleted text begin $8,000deleted text end new text begin 200 percent of the statewide adjusted net tax capacity equalizing factornew text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2013 and later.
 new text end

Sec. 2.

new text begin [123B.555] SCHOOL BOND AGRICULTURAL CREDIT.
 new text end

new text begin Subdivision 1. new text end

new text begin Eligibility. new text end

new text begin All class 2a, 2b, and 2c property under section 273.13,
subdivision 23, except for property consisting of the house, garage, and immediately
surrounding one acre of land of an agricultural homestead, is eligible to receive the credit
under this section.
 new text end

new text begin Subd. 2. new text end

new text begin Credit amount. new text end

new text begin For each qualifying property, the school bond agricultural
credit is equal to 66 percent of the property's eligible net tax capacity multiplied by the
school debt tax rate determined under section 275.08, subdivision 1b.
 new text end

new text begin Subd. 3. new text end

new text begin Credit reimbursements. new text end

new text begin The county auditor shall determine the tax
reductions allowed under this section within the county for each taxes payable year and
shall certify that amount to the commissioner of revenue as a part of the abstracts of tax
lists submitted under section 275.29. Any prior year adjustments shall also be certified on
the abstracts of tax lists. The commissioner shall review the certifications for accuracy,
and may make such changes as are deemed necessary, or return the certification to the
county auditor for correction. The credit under this section must be used to reduce the
school district net tax capacity-based property tax as provided in section 273.1393.
 new text end

new text begin Subd. 4. new text end

new text begin Payment. new text end

new text begin The commissioner of revenue shall certify the total of the tax
reductions granted under this section for each taxes payable year within each school
district to the commissioner of education, who shall pay the reimbursement amounts to
each school district as provided in section 273.1392.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2013 and later.
 new text end

Sec. 3.

Minnesota Statutes 2008, section 124D.4531, is amended to read:


124D.4531 CAREER AND TECHNICAL deleted text begin LEVYdeleted text end new text begin AIDnew text end .

Subdivision 1.

Career and technical deleted text begin levydeleted text end new text begin aidnew text end .

(a) A district with a career and
technical program approved under this section deleted text begin for the fiscal year in which the levy is
certified may levy an amountdeleted text end new text begin is eligible for aidnew text end equal to the lesser of:

(1) deleted text begin $80deleted text end new text begin $240new text end times the district's average daily membership in grades 10 through 12
for the fiscal year in which the levy is certified; or

(2) 25 percent of approved expenditures in the new text begin previous new text end fiscal year deleted text begin in which the
levy is certifieddeleted text end for the following:

(i) salaries paid to essential, licensed personnel providing direct instructional
services to students in that fiscal year for services rendered in the district's approved
career and technical education programs;

(ii) contracted services provided by a public or private agency other than a Minnesota
school district or cooperative center under subdivision 7;

(iii) necessary travel between instructional sites by licensed career and technical
education personnel;

(iv) necessary travel by licensed career and technical education personnel for
vocational student organization activities held within the state for instructional purposes;

(v) curriculum development activities that are part of a five-year plan for
improvement based on program assessment;

(vi) necessary travel by licensed career and technical education personnel for
noncollegiate credit-bearing professional development; and

(vii) specialized vocational instructional supplies.

(b) Up to ten percent of a district's career and technical deleted text begin levydeleted text end new text begin aidnew text end may be spent on
equipment purchases. Districts using the career and technical deleted text begin levydeleted text end new text begin aidnew text end for equipment
purchases must report to the department on the improved learning opportunities for
students that result from the investment in equipment.

deleted text begin (c) The district must recognize the full amount of this levy as revenue for the fiscal
year in which it is certified.
 deleted text end

Subd. 2.

Allocation from cooperative centers and intermediate districts.

For
purposes of this section, a cooperative center or an intermediate district must allocate its
approved expenditures for career and technical education programs among participating
districts.

Subd. 3.

deleted text begin Levydeleted text end new text begin Aidnew text end guarantee.

Notwithstanding subdivision 1, the career and
technical education deleted text begin levydeleted text end new text begin aid new text end for a district is not less than the lesser of:

(1) the district's career and technical education deleted text begin levy authoritydeleted text end new text begin revenue new text end for the
previous fiscal year; or

(2) 100 percent of the approved expenditures for career and technical programs
included in subdivision 1, paragraph (b), for the new text begin prior new text end fiscal year deleted text begin in which the levy is
certifieddeleted text end .

Subd. 4.

District reports.

Each district or cooperative center must report data to the
department for all career and technical education programs as required by the department
deleted text begin to implement the career and technical levy formuladeleted text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aid payments for fiscal year
2014 and thereafter.
 new text end

Sec. 4.

Minnesota Statutes 2008, section 124D.59, subdivision 2, is amended to read:


Subd. 2.

Pupil of limited English proficiency.

(a) "Pupil of limited English
proficiency" means a pupil in kindergarten through grade 12 who meets the following
requirements:

(1) the pupil, as declared by a parent or guardian first learned a language other than
English, comes from a home where the language usually spoken is other than English, or
usually speaks a language other than English; and

(2) the pupil is determined by developmentally appropriate measures, which might
include observations, teacher judgment, parent recommendations, or developmentally
appropriate assessment instruments, to lack the necessary English skills to participate
fully in classes taught in English.

(b) Notwithstanding paragraph (a), a pupil in grades 4 through 12 who was enrolled
in a Minnesota public school on the dates during the previous school year when a
commissioner provided assessment that measures the pupil's emerging academic English
was administered, shall not be counted as a pupil of limited English proficiency in
calculating limited English proficiency pupil units under section 126C.05, subdivision
17, and shall not generate state limited English proficiency aid under section 124D.65,
subdivision 5, unless the pupil scored below the state cutoff score on an assessment
measuring emerging academic English provided by the commissioner during the previous
school year.

(c) Notwithstanding paragraphs (a) and (b), a pupil in kindergarten through grade 12
shall not be counted as a pupil of limited English proficiency in calculating limited English
proficiency pupil units under section 126C.05, subdivision 17, and shall not generate state
limited English proficiency aid under section 124D.65, subdivision 5, ifdeleted text begin :deleted text end

deleted text begin (1)deleted text end the pupil is not enrolled during the current fiscal year in an educational program
for pupils of limited English proficiency in accordance with sections 124D.58 to 124D.64deleted text begin ;
ordeleted text end new text begin .new text end

deleted text begin (2) the pupil has generated five or more years of average daily membership in
Minnesota public schools since July 1, 1996.
 deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2014
and later.
 new text end

Sec. 5.

Minnesota Statutes 2008, section 124D.65, subdivision 5, is amended to read:


Subd. 5.

School district LEP revenue.

(a) A district's limited English proficiency
programs revenue equals the product ofnew text begin :new text end (1) deleted text begin $700 in fiscal year 2004 and later timesdeleted text end new text begin .2;new text end
(2) new text begin the basic formula allowance for that year; and (3) new text end the greater of 20 or the adjusted
marginal cost average daily membership of eligible pupils of limited English proficiency
enrolled in the district during the current fiscal year.

(b) A pupil ceases to generate state limited English proficiency aid in the school
year following the school year in which the pupil attains the state cutoff score on a
commissioner-provided assessment that measures the pupil's emerging academic English.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2014
and later.
 new text end

Sec. 6.

Minnesota Statutes 2008, section 125A.76, subdivision 5, is amended to read:


Subd. 5.

School district special education aid.

A school district's special education
aid deleted text begin for fiscal year 2008 and laterdeleted text end equals deleted text begin the state total special education aid times the ratio
of the district'sdeleted text end new text begin its new text end initial special education aid deleted text begin to the state total initial special education aiddeleted text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2014
and later.
 new text end

Sec. 7.

Minnesota Statutes 2008, section 125A.79, subdivision 7, is amended to read:


Subd. 7.

District special education excess cost aid.

A district's special education
excess cost aid deleted text begin for fiscal year 2002 and laterdeleted text end equals deleted text begin the state total special education excess
cost aid times the ratio of the district'sdeleted text end new text begin itsnew text end initial excess cost aid deleted text begin to the state total initial
excess cost aiddeleted text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2014
and later.
 new text end

Sec. 8.

Minnesota Statutes 2008, section 126C.01, is amended by adding a subdivision
to read:


new text begin Subd. 2a. new text end

new text begin Adjusted net tax capacity equalizing factor. new text end

new text begin The adjusted net tax
capacity equalizing factor equals the quotient derived by dividing the total adjusted net tax
capacity of all school districts in the state for the year before the year the levy is certified
by the total number of adjusted pupil units in the state for the current school year.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2013 and later.
 new text end

Sec. 9.

Minnesota Statutes 2008, section 126C.01, is amended by adding a subdivision
to read:


new text begin Subd. 3a. new text end

new text begin Referendum market value equalizing factor. new text end

new text begin The referendum market
value equalizing factor equals the quotient derived by dividing the total referendum
market value of all school districts in the state for the year before the year the levy is
certified by the total number of resident pupil units in the state for the current school year.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2013.
 new text end

Sec. 10.

Minnesota Statutes 2008, section 126C.01, is amended by adding a
subdivision to read:


new text begin Subd. 5a. new text end

new text begin Location equity index. new text end

new text begin (a) A school district's location equity index
equals each district's composite wage level divided by the statewide average wage for the
same period. The composite wage level for a school district equals the sum of 50 percent
of the district's county wage level and 50 percent of the district's economic development
region composite wage level. The composite wage level is computed by using the most
recent three-year weighted wage data.
 new text end

new text begin (b) A school district's location equity index must not be less than .9 or greater than
1.05.
 new text end

new text begin (c) The commissioner of education annually must recalculate the indexes in this
section. For purposes of this subdivision, the commissioner must locate a school district
with boundaries that cross county borders in the county that generates the highest location
equity index for that district.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2014
and later.
 new text end

Sec. 11.

Minnesota Statutes 2008, section 126C.05, subdivision 1, is amended to read:


Subdivision 1.

Pupil unit.

Pupil units for each Minnesota resident pupil under the
age of 21 or who meets the requirements of section 120A.20, subdivision 1, paragraph (c),
in average daily membership enrolled in the district of residence, in another district under
sections 123A.05 to 123A.08, 124D.03, 124D.08, or 124D.68; in a charter school under
section 124D.10; or for whom the resident district pays tuition under section 123A.18,
123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88, subdivision 4, 124D.04,
124D.05, 125A.03 to 125A.24, 125A.51, or 125A.65, shall be counted according to this
subdivision.

(a) A prekindergarten pupil with a disability who is enrolled in a program approved
by the commissioner and has an individual education plan is counted as the ratio of the
number of hours of assessment and education service to 825 times 1.25 with a minimum
average daily membership of 0.28, but not more than 1.25 pupil units.

(b) A prekindergarten pupil who is assessed but determined not to be disabled is
counted as the ratio of the number of hours of assessment service to 825 times 1.25.

(c) A kindergarten pupil with a disability who is enrolled in a program approved
by the commissioner is counted as the ratio of the number of hours of assessment and
education services required in the fiscal year by the pupil's individual education program
plan to 875, but not more than one.

(d) A kindergarten pupil who is not included in paragraph (c) is counted as deleted text begin .612deleted text end new text begin 1.0new text end
pupil units.

(e) A pupil who is in any of grades 1 to 3 is counted as deleted text begin 1.115deleted text end new text begin 1.0new text end pupil units for
fiscal year 2000 and thereafter.

(f) A pupil who is any of grades 4 to 6 is counted as deleted text begin 1.06deleted text end new text begin 1.0new text end pupil units for fiscal
year 1995 and thereafter.

(g) A pupil who is in any of grades 7 to 12 is counted as deleted text begin 1.3deleted text end new text begin 1.0new text end pupil units.

(h) A pupil who is in the postsecondary enrollment options program is counted as
deleted text begin 1.3deleted text end new text begin 1.0new text end pupil units.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2014
and later.
 new text end

Sec. 12.

Minnesota Statutes 2008, section 126C.05, subdivision 3, is amended to read:


Subd. 3.

Compensation revenue pupil units.

Compensation revenue pupil units
deleted text begin for fiscal year 1998 and thereafterdeleted text end must be computed according to this subdivision.

(a) The compensation revenue concentration percentage for each deleted text begin building in adeleted text end
district equals the product of 100 times the ratio of:

(1) deleted text begin the sum ofdeleted text end the number of pupils enrolled in the deleted text begin buildingdeleted text end new text begin districtnew text end eligible to receive
free deleted text begin lunch plus one-half of the pupils eligible to receive reduced priceddeleted text end new text begin or reduced-price
new text end lunch on October 1 of the previous fiscal year; to

(2) the number of pupils enrolled in the deleted text begin buildingdeleted text end new text begin districtnew text end on October 1 of the
previous fiscal year.

(b) The compensation revenue pupil weighting factor deleted text begin for a buildingdeleted text end equals the
deleted text begin lesser of one or the quotient obtained by dividing the building'sdeleted text end compensation revenue
concentration percentage deleted text begin by 80.0deleted text end .

(c) The compensation revenue pupil units for a deleted text begin buildingdeleted text end new text begin districtnew text end equals the product of:

(1) deleted text begin the sum ofdeleted text end the number of pupils enrolled in the deleted text begin buildingdeleted text end new text begin districtnew text end eligible to receive
free deleted text begin lunch and one-half of the pupils eligible to receive reduced priceddeleted text end new text begin or reduced-price
new text end lunch on October 1 of the previous fiscal year; times

(2) the compensation revenue pupil weighting factor for the deleted text begin building; times
deleted text end

deleted text begin (3) .60deleted text end new text begin districtnew text end .

(d) Notwithstanding paragraphs (a) to (c), for charter schools and contracted
alternative programs in the first year of operation, compensation revenue pupil units shall
be computed using data for the current fiscal year. If the charter school or contracted
alternative program begins operation after October 1, compensatory revenue pupil units
shall be computed based on pupils enrolled on an alternate date determined by the
commissioner, and the compensation revenue pupil units shall be prorated based on the
ratio of the number of days of student instruction to 170 days.

(e) The percentages in this subdivision must be based on the count of individual
pupils and not on a building average or minimum.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2014
and later.
 new text end

Sec. 13.

Minnesota Statutes 2008, section 126C.05, subdivision 5, is amended to read:


Subd. 5.

Adjusted pupil units.

deleted text begin (a)deleted text end Adjusted pupil units for a district or charter
school means the sum of:

(1) the number of pupil units served, according to subdivision 7, plus

(2) pupil units according to subdivision 1 for whom the district or charter school
pays tuition under section 123A.18, 123A.22, 123A.30, 123A.32, 123A.44, 123A.488,
123B.88, subdivision 4, 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 125A.65,
minus

(3) pupil units according to subdivision 1 for whom the district or charter school
receives tuition under section 123A.18, 123A.22, 123A.30, 123A.32, 123A.44, 123A.488,
123B.88, subdivision 4, 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 125A.65.

deleted text begin (b) Adjusted marginal cost pupil units means the greater of:
 deleted text end

deleted text begin (1) the sum of .77 times the pupil units defined in paragraph (a) for the current school
year and .23 times the pupil units defined in paragraph (a) for the previous school year; or
 deleted text end

deleted text begin (2) the number of adjusted pupil units defined in paragraph (a) for the current school
year.
 deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2014
and later.
 new text end

Sec. 14.

Minnesota Statutes 2008, section 126C.05, subdivision 6, is amended to read:


Subd. 6.

Resident pupil units.

deleted text begin (a)deleted text end Resident pupil units for a district means the
number of pupil units according to subdivision 1 residing in the district.

deleted text begin (b) Resident marginal cost pupil units means the greater of:
 deleted text end

deleted text begin (1) the sum of .77 times the pupil units defined in paragraph (a) for the current year
and .23 times the pupil units defined in paragraph (a) for the previous school year; or
 deleted text end

deleted text begin (2) the number of resident pupil units defined in paragraph (a) for the current school
year.
 deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2014
and later.
 new text end

Sec. 15.

Minnesota Statutes 2008, section 126C.05, subdivision 8, is amended to read:


Subd. 8.

Average daily membership.

(a) Membership for pupils in grades
kindergarten through 12 and for prekindergarten pupils with disabilities shall mean the
number of pupils on the current roll of the school, counted from the date of entry until
withdrawal. The date of withdrawal shall mean the day the pupil permanently leaves
the school or the date it is officially known that the pupil has left or has been legally
excused. However, a pupil, regardless of age, who has been absent from school for 15
consecutive school days during the regular school year or for five consecutive school days
during summer school or intersession classes of flexible school year programs without
receiving instruction in the home or hospital shall be dropped from the roll and classified
as withdrawn. Nothing in this section shall be construed as waiving the compulsory
attendance provisions cited in section 120A.22. Average daily membership equals the
sum for all pupils of the number of days of the school year each pupil is enrolled in the
district's schools divided by the number of days the schools are in session. Days of
summer school or intersession classes of flexible school year programs are only included
in the computation of membership for pupils with a disability not appropriately served
primarily in the regular classroom. A student must not be counted as more than 1.2 pupils
in average daily membership under this section. When the initial total average daily
membership exceeds 1.2 for a pupil enrolled in more than one school district during the
fiscal year, each district's average daily membership must be reduced proportionately.

(b) A student must not be counted as more than one pupil in average daily
membership except for purposes of section 126C.10, subdivision 2a.

new text begin (c) For purposes of section 126C.10, subdivision 2a, only, a pupil's average daily
membership is counted as 1.0 once a kindergarten or elementary pupil has received 960
hours of instruction during the school year and as 1.0 once a secondary student has
received 1,050 hours of instruction during the school year.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2014
and later.
 new text end

Sec. 16.

Minnesota Statutes 2008, section 126C.05, subdivision 16, is amended to read:


Subd. 16.

Free and reduced-price lunches.

The commissioner shall determine the
number of children eligible to receive either a free or reduced-price lunch on October 1
each year. Children enrolled deleted text begin in a buildingdeleted text end on October 1 and determined to be eligible to
receive free or reduced-price lunch by December 15 of that school year shall be counted
as eligible on October 1 for purposes of subdivision 3. The commissioner may use
federal definitions for these purposes and may adjust these definitions as appropriate.
The commissioner may adopt reporting guidelines to assure accuracy of data counts and
eligibility. Districts shall use any guidelines adopted by the commissioner.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2014
and later.
 new text end

Sec. 17.

Minnesota Statutes 2008, section 126C.05, subdivision 17, is amended to read:


Subd. 17.

LEP pupil units.

(a) Limited English proficiency pupil units deleted text begin for fiscal
year 2004 and thereafter shall be determined according to this subdivision.
deleted text end

deleted text begin (b) The limited English proficiency concentration percentage for a district equals the
product of 100 times the ratio of:
 deleted text end

deleted text begin (1)deleted text end new text begin meansnew text end the number of eligible pupils of limited English proficiency in average
daily membership enrolled in the district during the current fiscal yeardeleted text begin ; todeleted text end new text begin .
new text end

deleted text begin (2) the number of pupils in average daily membership enrolled in the district.
 deleted text end

deleted text begin (c) The limited English proficiency pupil units for each eligible pupil of limited
English proficiency in average daily membership equals the lesser of one or the quotient
obtained by dividing the limited English proficiency concentration percentage for the
pupil's district of enrollment by 11.5.
 deleted text end

deleted text begin (d)deleted text end new text begin (b)new text end Limited English proficiency pupil units shall be counted by the district of
enrollment.

deleted text begin (e)deleted text end new text begin (c)new text end Notwithstanding paragraph deleted text begin (d)deleted text end new text begin (b)new text end , for the purposes of this subdivision,
pupils enrolled in a cooperative or intermediate school district shall be counted by the
district of residence.

deleted text begin (f)deleted text end new text begin (d)new text end For the purposes of this subdivision, the terms defined in section 124D.59
have the same meaning.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2014
and later.
 new text end

Sec. 18.

new text begin [126C.09] EDUCATION FUNDING FRAMEWORK.
 new text end

new text begin Subdivision 1. new text end

new text begin Basic formula framework; general classroom funding. new text end

new text begin The
general classroom funding for each school district equals the sum of the district's general
education basic revenue, extended time revenue, compensatory revenue, LEP revenue,
referendum replacement revenue, and special education revenue.
 new text end

new text begin Subd. 2. new text end

new text begin District instructional services. new text end

new text begin A school district's instructional services
revenue equals the sum of its operating sparsity revenue, location equity revenue, and
declining enrollment revenue.
 new text end

new text begin Subd. 3. new text end

new text begin District support services. new text end

new text begin A school district's support services revenue
equals the sum of its operating capital revenue, alternative facilities revenue, integration
revenue, and transportation revenue.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2014
and later.
 new text end

Sec. 19.

Minnesota Statutes 2008, section 126C.10, subdivision 1, is amended to read:


Subdivision 1.

General education revenue.

new text begin (a) new text end For fiscal year 2006 deleted text begin and laterdeleted text end new text begin
through 2013new text end , the general education revenue for each district equals the sum of the
district's basic revenue, extended time revenue, gifted and talented revenue, basic skills
revenue, training and experience revenue, secondary sparsity revenue, elementary sparsity
revenue, transportation sparsity revenue, total operating capital revenue, equity revenue,
alternative teacher compensation revenue, and transition revenue.

new text begin (b) For fiscal years 2014 and later, a school district's general education revenue
equals the sum of its basic revenue, extended time revenue, declining enrollment revenue,
basic skills revenue, location equity revenue, referendum replacement revenue, secondary
sparsity revenue, elementary sparsity revenue, transportation revenue, and total operating
capital revenue.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2014
and later.
 new text end

Sec. 20.

Minnesota Statutes 2008, section 126C.10, subdivision 2, is amended to read:


Subd. 2.

Basic revenue.

new text begin (a) new text end The basic revenue for each district equals the formula
allowance times the adjusted deleted text begin marginal costdeleted text end pupil units for the school year.

new text begin (b) new text end The formula allowance for fiscal year 2007 is $4,974. The formula allowance for
fiscal year 2008 is $5,074 and the formula allowance for fiscal year 2009 deleted text begin and subsequent
yearsdeleted text end is $5,124.

new text begin (c) The formula allowance for fiscal year 2014 is $7,500. The formula allowance
for fiscal year 2015 and later equals the formula allowance for the previous year times
the sum of 1.0 and the greater of zero or the ratio of implicit price deflator, as defined in
section 275.70, subdivision 2, for the most recent year to the implicit price deflator for
the previous year.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2014
and later.
 new text end

Sec. 21.

Minnesota Statutes 2008, section 126C.10, subdivision 2a, is amended to read:


Subd. 2a.

Extended time revenue.

(a) A school district's extended time revenue
is equal to the product of deleted text begin $4,601deleted text end new text begin the formula allowance for that yearnew text end and the sum of
the adjusted deleted text begin marginal costdeleted text end pupil units of the district for each pupil in average daily
membership in excess of 1.0 and less than 1.2 according to section 126C.05, subdivision 8.

(b) A school district's extended time revenue may be used for extended day
programs, extended week programs, summer school, and other programming authorized
under the learning year program.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2014
and later.
 new text end

Sec. 22.

Minnesota Statutes 2008, section 126C.10, is amended by adding a
subdivision to read:


new text begin Subd. 2c. new text end

new text begin Declining enrollment revenue. new text end

new text begin A school district's declining enrollment
revenue equals the greater of zero or the product of: (1) the basic formula allowance for
that year; and (2) the difference between the mean average adjusted pupil units for the
three preceding years and the adjusted pupil units for the current year.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2014
and later.
 new text end

Sec. 23.

Minnesota Statutes 2008, section 126C.10, is amended by adding a
subdivision to read:


new text begin Subd. 2d. new text end

new text begin Location equity revenue. new text end

new text begin A school district's location equity revenue
equals the product of:
 new text end

new text begin (1) .50;
 new text end

new text begin (2) the basic formula allowance for that year;
 new text end

new text begin (3) the district's adjusted pupil units for that year; and
 new text end

new text begin (4) the district's location equity index minus .9.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2014
and later.
 new text end

Sec. 24.

Minnesota Statutes 2008, section 126C.10, is amended by adding a
subdivision to read:


new text begin Subd. 2e. new text end

new text begin Referendum replacement revenue. new text end

new text begin A school district's referendum
replacement revenue equals $500 times the district's adjusted pupil units for that year.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2014
and later.
 new text end

Sec. 25.

Minnesota Statutes 2008, section 126C.10, subdivision 3, is amended to read:


Subd. 3.

Compensatory education revenue.

(a) The compensatory education
revenue for each deleted text begin building in thedeleted text end district equals new text begin the greater of: (1) $2,500 times the district's
enrollment of students eligible for free or reduced-price meals under section 126C.05,
subdivision 3, paragraph (a), clause (1); or (2) 40 percent of new text end the formula allowance deleted text begin minus
$415deleted text end times the compensation revenue pupil units computed according to section 126C.05,
subdivision 3. Revenue shall be paid to the district and must be allocated according to
section 126C.15, subdivision 2.

(b) When the district contracting with an alternative program under section 124D.69
changes prior to the start of a school year, the compensatory revenue generated by pupils
attending the program shall be paid to the district contracting with the alternative program
for the current school year, and shall not be paid to the district contracting with the
alternative program for the prior school year.

(c) When the fiscal agent district for an area learning center changes prior to the start
of a school year, the compensatory revenue shall be paid to the fiscal agent district for the
current school year, and shall not be paid to the fiscal agent district for the prior school year.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2014
and later.
 new text end

Sec. 26.

Minnesota Statutes 2008, section 126C.10, subdivision 4, is amended to read:


Subd. 4.

Basic skills revenue.

A school district's basic skills revenue equals the
sum of:

(1) compensatory revenue under subdivision 3; plus

(2) limited English proficiency revenue under section 124D.65, subdivision 5deleted text begin ; plusdeleted text end new text begin .new text end

deleted text begin (3) $250 times the limited English proficiency pupil units under section 126C.05,
subdivision 17.deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2014
and later.
 new text end

Sec. 27.

Minnesota Statutes 2008, section 126C.10, subdivision 6, is amended to read:


Subd. 6.

Definitions.

The definitions in this subdivision apply only to subdivisions
7 and 8.

(a) "High school" means a public secondary school, except a charter school under
section 124D.10, that has pupils enrolled in at least the 10th, 11th, and 12th grades. If
there is no high school in the district and the school is at least deleted text begin 19deleted text end new text begin 15new text end miles from the next
nearest school, the commissioner must designate one school in the district as a high school
for the purposes of this section.

(b) "Secondary average daily membership" means, for a district that has only one
high school, the average daily membership of pupils served in grades 7 through 12. For a
district that has more than one high school, "secondary average daily membership" for
each high school means the product of the average daily membership of pupils served in
grades 7 through 12 in the high school, times the ratio of six to the number of grades
in the high school.

(c) "Attendance area" means the total surface area of the district, in square miles,
divided by the number of high schools in the district. For a district that does not operate
a high school and is less than deleted text begin 19deleted text end new text begin 15new text end miles from the nearest operating high school, the
attendance area equals zero.

(d) "Isolation index" for a high school means the square root of 55 percent of the
attendance area plus the distance in miles, according to the usually traveled routes,
between the high school and the nearest high school. For a district in which there is located
land defined in section 84A.01, 84A.20, or 84A.31, the distance in miles is the sum of:

(1) the square root of one-half of the attendance area; and

(2) the distance from the border of the district to the nearest high school.

(e) "Qualifying high school" means a high school that has an isolation index greater
than 23 and that has secondary average daily membership of less than 400.

(f) "Qualifying elementary school" means a public elementary school, except a
charter school under section 124D.10, that is located deleted text begin 19deleted text end new text begin 15new text end miles or more from the nearest
elementary school or from the nearest elementary school within the district and, in either
case, has an elementary average daily membership of an average of 20 or fewer per grade.

(g) "Elementary average daily membership" means, for a district that has only
one elementary school, the average daily membership of pupils served in kindergarten
through grade 6. For a district that has more than one elementary school, "average daily
membership" for each school means the average daily membership of pupils served in
kindergarten through grade 6 multiplied by the ratio of seven to the number of grades
in the elementary school.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2014
and later.
 new text end

Sec. 28.

Minnesota Statutes 2008, section 126C.10, subdivision 13, is amended to read:


Subd. 13.

Total operating capitalnew text begin and technologynew text end revenue.

(a) Total operating
capital revenue for a district equalsnew text begin : (1) $50 times the adjusted pupil units for the school
year for technology purposes; (2) for any district not participating in the alternative
facilities program under section 123B.59, $600 times the adjusted pupil units for deferred
maintenance and health and safety purposes under sections 123B.57 and 123B.59; (3)new text end the
amount determined under paragraph (b) or (c)deleted text begin , plus $73deleted text end new text begin ; and (4) $100new text end times the adjusted
deleted text begin marginal costdeleted text end pupil units for the school year. The revenue must be placed in a reserved
account in the general fund and may only be used according to subdivision 14.

(b) Capital revenue for a district equals $100 times the district's maintenance cost
index times its adjusted deleted text begin marginal costdeleted text end pupil units for the school year.

(c) The revenue for a district that operates a program under section 124D.128, is
increased by an amount equal to $30 times the number of deleted text begin marginal costdeleted text end new text begin adjustednew text end pupil
units served at the site where the program is implemented.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2014
and later.
 new text end

Sec. 29.

Minnesota Statutes 2008, section 126C.10, subdivision 14, is amended to read:


Subd. 14.

Uses of total operating capital revenue.

new text begin Technology revenue may only
be used for purposes in clauses (18), (19), (21), (23), and (24). new text end Total operating capital
revenue may be used only for the following purposes:

(1) to acquire land for school purposes;

(2) to acquire or construct buildings for school purposes;

(3) to rent or lease buildings, including the costs of building repair or improvement
that are part of a lease agreement;

(4) to improve and repair school sites and buildings, and equip or reequip school
buildings with permanent attached fixtures, including library media centers;

(5) for a surplus school building that is used substantially for a public nonschool
purpose;

(6) to eliminate barriers or increase access to school buildings by individuals with a
disability;

(7) to bring school buildings into compliance with the State Fire Code adopted
according to chapter 299F;

(8) to remove asbestos from school buildings, encapsulate asbestos, or make
asbestos-related repairs;

(9) to clean up and dispose of polychlorinated biphenyls found in school buildings;

(10) to clean up, remove, dispose of, and make repairs related to storing heating fuel
or transportation fuels such as alcohol, gasoline, fuel oil, and special fuel, as defined
in section 296A.01;

(11) for energy audits for school buildings and to modify buildings if the audit
indicates the cost of the modification can be recovered within ten years;

(12) to improve buildings that are leased according to section 123B.51, subdivision 4;

(13) to pay special assessments levied against school property but not to pay
assessments for service charges;

(14) to pay principal and interest on state loans for energy conservation according to
section 216C.37 or loans made under the Douglas J. Johnson Economic Protection Trust
Fund Act according to sections 298.292 to 298.298;

(15) to purchase or lease interactive telecommunications equipment;

(16) by board resolution, to transfer money into the debt redemption fund to: (i)
pay the amounts needed to meet, when due, principal and interest payments on certain
obligations issued according to chapter 475; or (ii) pay principal and interest on debt
service loans or capital loans according to section 126C.70;

(17) to pay operating capital-related assessments of any entity formed under a
cooperative agreement between two or more districts;

(18) to purchase or lease computers and related materials, copying machines,
telecommunications equipment, and other noninstructional equipment;

(19) to purchase or lease assistive technology or equipment for instructional
programs;

(20) to purchase textbooks;

(21) to purchase new and replacement library media resources or technology;

(22) to purchase vehicles;

(23) to purchase or lease telecommunications equipment, computers, and related
equipment for integrated information management systems for:

(i) managing and reporting learner outcome information for all students under a
results-oriented graduation rule;

(ii) managing student assessment, services, and achievement information required
for students with individual education plans; and

(iii) other classroom information management needs; and

(24) to pay personnel costs directly related to the acquisition, operation, and
maintenance of telecommunications systems, computers, related equipment, and network
and applications software.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2014.
 new text end

Sec. 30.

Minnesota Statutes 2008, section 126C.10, subdivision 18, is amended to read:


Subd. 18.

Transportation sparsity revenue allowance.

deleted text begin (a)deleted text end A district's
transportation sparsity allowance equals the greater of zero or the result of the following
computation:

(i) Multiply the formula allowance according to subdivision 2, by .1469.

(ii) Multiply the result in clause (i) by the district's sparsity index raised to the
26/100 power.

(iii) Multiply the result in clause (ii) by the district's density index raised to the
13/100 power.

(iv) Multiply the formula allowance according to subdivision 2, by .0485.

(v) Subtract the result in clause (iv) from the result in clause (iii).

deleted text begin (b) Transportation sparsity revenue is equal to the transportation sparsity allowance
times the adjusted marginal cost pupil units.
 deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for fiscal year 2014 and later.
 new text end

Sec. 31.

Minnesota Statutes 2008, section 126C.10, is amended by adding a
subdivision to read:


new text begin Subd. 18a. new text end

new text begin Transportation revenue. new text end

new text begin (a) A school district's transportation revenue
equals the sum of its transportation sparsity revenue, hazardous transportation revenue,
and bus purchase revenue.
 new text end

new text begin (b) A school district's transportation sparsity revenue equals its transportation
sparsity allowance times its adjusted pupil units for that year.
 new text end

new text begin (c) A school district's hazardous transportation aid equals the amount necessary to
provide transportation services to students facing hazardous transportation conditions. A
district's hazardous transportation aid must not exceed 20 percent of the district's total
regular to and from school transportation costs for that year. For any year, a school
district may receive aid under this paragraph only after the school board has considered
the comprehensive plan for hazardous transportation submitted by the district's pupil
transportation safety committee at a regularly scheduled meeting of the school board. The
comprehensive plan may not be adopted until after the board has allowed the public
reasonable time to testify on the plan.
 new text end

new text begin (d) A school district's bus purchase revenue equals five percent of the district's
spending on transportation services for the previous fiscal year.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2014
and later.
 new text end

Sec. 32.

new text begin [126C.115] INNOVATION REVENUE.
 new text end

new text begin (a) A school district must use its innovation revenue to implement evidence-based
innovation premised on research-based curriculum and instruction and other education
programs and practices, including best teaching practices, that are known to improve
academic performance for diverse groups of students. If a school district's growth in
academic performance, as measured by a growth-based value-added system, is below the
established progress levels, the school district must submit a plan to the commissioner,
developed in consultation with interested parents, that describes how the district proposes
to use its innovation revenue to supplement state reading requirements under section
120B.12, subdivision 1, and state math and science requirements under section 120B.023,
subdivision 2, paragraphs (b) and (d), and improve student outcomes. The plan must:
 new text end

new text begin (1) identify specific education goals, consistent with this section, and the indicators
to demonstrate progress toward achieving those goals, which may include a value-added
assessment model under sections 120B.35 and 120B.362;
 new text end

new text begin (2) supplement current district initiatives that may transform district programs and
practices sufficient to significantly improve student outcomes; and
 new text end

new text begin (3) demonstrate how innovation revenue helps narrow and eliminate differences in
student academic achievement in reading, math, and science based on student measures of
mobility, attendance, race and ethnicity, gender, English language learner status, eligibility
for free or reduced price lunch, and special education, among other outcomes.
 new text end

new text begin (b) After transmitting its plan to the commissioner, a district must spend its
innovation revenue effectively and efficiently, consistent with its plan. A school district
that submits an innovation revenue plan under paragraph (a) must report annually by June
30 to the commissioner and post on the district's official Web site reliable and accessible
information and supporting longitudinal data showing the amount of progress the district
made in the immediately preceding school year and previous school years in realizing its
innovation revenue goals. The commissioner must analyze the data from the annual
district reports and post the analysis on the department's official Web site.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2014
and later.
 new text end

Sec. 33.

Minnesota Statutes 2008, section 126C.13, subdivision 4, is amended to read:


Subd. 4.

General education aid.

deleted text begin For fiscal years 2007 and later,deleted text end A district's general
education aid deleted text begin is the sum of the following amountsdeleted text end new text begin equals itsnew text end :

(1) general education revenuedeleted text begin , excluding equity revenue, total operating capital
revenue, alternative teacher compensation revenue, and transition revenue;
deleted text end

deleted text begin (2) operating capital aid under section 126C.10, subdivision 13b;
 deleted text end

deleted text begin (3) equity aid under section 126C.10, subdivision 30;
 deleted text end

deleted text begin (4) alternative teacher compensation aid under section 126C.10, subdivision 36;
 deleted text end

deleted text begin (5) transition aid under section 126C.10, subdivision 33deleted text end new text begin for that yearnew text end ;

deleted text begin (6)deleted text end new text begin (2)new text end shared time aid under section 126C.01, subdivision 7;

deleted text begin (7)deleted text end new text begin (3)new text end referendum aid under section 126C.17, subdivisions 7 and 7a; and

deleted text begin (8)deleted text end new text begin (4)new text end online learning aid according to section 124D.096.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2014
and later.
 new text end

Sec. 34.

Minnesota Statutes 2008, section 126C.13, subdivision 5, is amended to read:


Subd. 5.

Uses of revenue.

deleted text begin Except as provided in sections 126C.10, subdivision
14; 126C.12; and 126C.15,deleted text end new text begin (a)new text end General education revenue may be used during the
regular school year and the summer for general and special school purposesnew text begin and for
prekindergarten programs except as limited by paragraph (b)new text end .

new text begin (b) General education revenue set-asides include:
 new text end

new text begin (1) 1.0 percent of basic revenue must be used only for gifted and talented activities
consistent with section 120B.15;
 new text end

new text begin (2) 5.0 percent of basic revenue must be used only to implement a district's
innovative revenue program activities under section 126C.115;
 new text end

new text begin (3) basic skills revenue must be used according to section 126C.15; and
 new text end

new text begin (4) operating capital revenue must be spent according to section 126C.10,
subdivision 14.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2014
and later.
 new text end

Sec. 35.

Minnesota Statutes 2008, section 126C.17, subdivision 1, is amended to read:


Subdivision 1.

Referendum allowance.

deleted text begin (a) For fiscal year 2003 and later, a district's
initial referendum revenue allowance equals the sum of the allowance under section
126C.16, subdivision 2, plus any additional allowance per resident marginal cost pupil
unit authorized under subdivision 9 before May 1, 2001, for fiscal year 2002 and later,
plus the referendum conversion allowance approved under subdivision 13, minus $415.
For districts with more than one referendum authority, the reduction must be computed
separately for each authority. The reduction must be applied first to the referendum
conversion allowance and next to the authority with the earliest expiration date. A
district's initial referendum revenue allowance may not be less than zero.
deleted text end

deleted text begin (b) For fiscal year 2003, a district's referendum revenue allowance equals the initial
referendum allowance plus any additional allowance per resident marginal cost pupil unit
authorized under subdivision 9 between April 30, 2001, and December 30, 2001, for
fiscal year 2003 and later.
 deleted text end

deleted text begin (c) For fiscal year 2004 and later,deleted text end A district's referendum revenue allowance equals
the sum of:

(1) the deleted text begin product of (i) the ratio of the resident marginal cost pupil units the district
would have counted for fiscal year 2004 under Minnesota Statutes 2002, section 126C.05,
to the district's resident marginal cost pupil units for fiscal year 2004, times (ii) thedeleted text end new text begin greater
of zero or the district'snew text end initial referendum allowance deleted text begin plus any additional allowance per
resident marginal cost pupil unit authorized under subdivision 9 between April 30, 2001,
and May 30, 2003,deleted text end for fiscal year deleted text begin 2003 and laterdeleted text end new text begin 2014 less $500new text end , plus

(2) any additional allowance per resident deleted text begin marginal costdeleted text end pupil unit authorized under
subdivision 9 after May 30, deleted text begin 2003deleted text end new text begin 2012new text end , for fiscal year deleted text begin 2005deleted text end new text begin 2014new text end and later.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2014
and later.
 new text end

Sec. 36.

Minnesota Statutes 2008, section 126C.17, subdivision 5, is amended to read:


Subd. 5.

Referendum equalization revenue.

(a) deleted text begin For fiscal year 2003 and later,deleted text end
A district's referendum equalization revenue equals the sum of the first tier referendum
equalization revenue and the second tier referendum equalization revenue.

deleted text begin (b) A district's first tier referendum equalization revenue equals the district's first
tier referendum equalization allowance times the district's resident marginal cost pupil
units for that year.
 deleted text end

deleted text begin (c) For fiscal year 2006, a district's first tier referendum equalization allowance
equals the lesser of the district's referendum allowance under subdivision 1 or $500. For
fiscal year 2007, a district's first tier referendum equalization allowance equals the lesser
of the district's referendum allowance under subdivision 1 or $600.
 deleted text end

deleted text begin For fiscal year 2008 and later,deleted text end new text begin (b) new text end A district's first tier referendum equalization
allowance equals the lesser of the district's referendum allowance under subdivision 1
or $700.

deleted text begin (d)deleted text end new text begin (c)new text end A district's second tier referendum equalization revenue equals the district's
second tier referendum equalization allowance times the district's resident marginal cost
pupil units for that year.

deleted text begin (e) For fiscal year 2006, a district's second tier referendum equalization allowance
equals the lesser of the district's referendum allowance under subdivision 1 or 18.6 percent
of the formula allowance, minus the district's first tier referendum equalization allowance.
For fiscal year 2007 and later,deleted text end new text begin (d)new text end A district's second tier referendum equalization
allowance equals the lesser of the district's referendum allowance under subdivision 1 or
26 percent of the formula allowance, minus the district's first tier referendum equalization
allowance.

deleted text begin (f) deleted text end new text begin (e) new text end Notwithstanding paragraph deleted text begin (e)deleted text end new text begin (d)new text end , the second tier referendum allowance for a
district qualifying for secondary sparsity revenue under section 126C.10, subdivision 7, or
elementary sparsity revenue under section 126C.10, subdivision 8, equals the district's
referendum allowance under subdivision 1 minus the district's first tier referendum
equalization allowance.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2014.
 new text end

Sec. 37.

Minnesota Statutes 2008, section 126C.17, subdivision 6, is amended to read:


Subd. 6.

Referendum equalization levy.

(a) deleted text begin For fiscal year 2003 and later,deleted text end
A district's referendum equalization levy equals the sum of the first tier referendum
equalization levy and the second tier referendum equalization levy.

(b) A district's first tier referendum equalization levy equals the district's first tier
referendum equalization revenue times the lesser of one or the ratio of the district's
referendum market value per resident marginal cost pupil unit to deleted text begin $476,000deleted text end new text begin 100 percent of
the statewide referendum market value equalizing factornew text end .

(c) A district's second tier referendum equalization levy equals the district's second
tier referendum equalization revenue times the lesser of one or the ratio of the district's
referendum market value per resident marginal cost pupil unit to deleted text begin $270,000deleted text end new text begin 60 percent of
the statewide referendum market value equalizing factornew text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2014.
 new text end

Sec. 38.

Minnesota Statutes 2008, section 126C.20, is amended to read:


126C.20 ANNUAL GENERAL EDUCATION AID APPROPRIATION.

There is annually appropriated from the general fund to the department the deleted text begin amountdeleted text end new text begin
amountsnew text end necessary fornew text begin : (1)new text end general education aidnew text begin ; (2) special education aid; (3) debt
service aid; and (4) the school bond agricultural creditnew text end . deleted text begin This amountdeleted text end new text begin These amountsnew text end must
be reduced by the amount of any money specifically appropriated for the same purpose
in any year from any state fund.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2014
and later.
 new text end

Sec. 39.

Minnesota Statutes 2008, section 126C.40, subdivision 1, is amended to read:


Subdivision 1.

To lease building or land.

(a) When an independent or a special
school district or a group of independent or special school districts finds it economically
advantageous to rent or lease a building or land for any instructional deleted text begin purposesdeleted text end new text begin or
administrative purpose,new text end or for school storage or furniture repair, and it determines that
the operating capital revenue authorized under section 126C.10, subdivision 13, is
insufficient for this purpose, it may apply to the commissioner for permission to make
an additional capital expenditure levy for this purpose. An application for permission to
levy under this subdivision must contain financial justification for the proposed levy, the
terms and conditions of the proposed lease, and a description of the space to be leased
and its proposed use.

(b) The criteria for approval of applications to levy under this subdivision must
include: the reasonableness of the price, the appropriateness of the space to the proposed
activity, the feasibility of transporting pupils to the leased building or land, conformity
of the lease to the laws and rules of the state of Minnesota, and the appropriateness of
the proposed lease to the space needs and the financial condition of the district. The
commissioner must not authorize a levy under this subdivision in an amount greater than
the cost to the district of renting or leasing a building or land for approved purposes.
The proceeds of this levy must not be used for custodial or other maintenance services.
A district may not levy under this subdivision for the purpose of leasing or renting a
district-owned building or site to itself.

(c) For agreements finalized after July 1, 1997, a district may not levy under this
subdivision for the purpose of leasing: (1) a newly constructed building used primarily
for regular kindergarten, elementary, or secondary instruction; or (2) a newly constructed
building addition or additions used primarily for regular kindergarten, elementary, or
secondary instruction that contains more than 20 percent of the square footage of the
previously existing building.

(d) Notwithstanding paragraph (b), a district may levy under this subdivision for the
purpose of leasing or renting a district-owned building or site to itself only if the amount
is needed by the district to make payments required by a lease purchase agreement,
installment purchase agreement, or other deferred payments agreement authorized by law,
and the levy meets the requirements of paragraph (c). A levy authorized for a district by
the commissioner under this paragraph may be in the amount needed by the district to
make payments required by a lease purchase agreement, installment purchase agreement,
or other deferred payments agreement authorized by law, provided that any agreement
include a provision giving the school districts the right to terminate the agreement
annually without penalty.

(e) The total levy under this subdivision for a district for any year must not exceed
$150 times the resident pupil units for the fiscal year to which the levy is attributable.

(f) For agreements for which a review and comment have been submitted to the
Department of Education after April 1, 1998, the term "instructional purpose" as used in
this subdivision excludes expenditures on stadiums.

(g) The commissioner of education may authorize a school district to exceed the
limit in paragraph (e) if the school district petitions the commissioner for approval. The
commissioner shall grant approval to a school district to exceed the limit in paragraph (e)
for not more than five years if the district meets the following criteria:

(1) the school district has been experiencing pupil enrollment growth in the
preceding five years;

(2) the purpose of the increased levy is in the long-term public interest;

(3) the purpose of the increased levy promotes colocation of government services;
and

(4) the purpose of the increased levy is in the long-term interest of the district by
avoiding over construction of school facilities.

(h) A school district that is a member of an intermediate school district may include
in its authority under this section the costs associated with leases of administrative and
classroom space for intermediate school district programs. This authority must not
exceed deleted text begin $43deleted text end new text begin $50new text end times the adjusted marginal cost pupil units of the member districts. This
authority is in addition to any other authority authorized under this section.

(i) In addition to the allowable capital levies in paragraph (a), a district that is a
member of the "Technology and Information Education Systems" data processing joint
board, that finds it economically advantageous to enter into a lease purchase agreement for
a building for a group of school districts or special school districts for staff development
purposes, may levy for its portion of lease costs attributed to the district within the total
levy limit in paragraph (e).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2014
and later.
 new text end

Sec. 40.

Minnesota Statutes 2008, section 127A.51, is amended to read:


127A.51 STATEWIDE AVERAGE REVENUE.

By October 1 of each year the commissioner must estimate the statewide average
adjusted general revenue per adjusted marginal cost pupil unit and the disparity in adjusted
general revenue among pupils and districts by computing the ratio of the 95th percentile
to the fifth percentile of adjusted general revenue. The commissioner must provide that
information to all districts.

If the disparity in adjusted general revenue as measured by the ratio of the 95th
percentile to the fifth percentile increases in any year, the commissioner shall recommend
to the legislature options for change in the general education formula that will limit the
disparity in adjusted general revenue to no more than the disparity for the previous
school year. The commissioner must submit the recommended options to the education
committees of the legislature by January 15.

For purposes of this section and section 126C.10, adjusted general revenue means:

(1) for fiscal year 2002, the sum of basic revenue under section 126C.10, subdivision
2; supplemental revenue under section 126C.10, subdivisions 9 and 12; transition revenue
under section 126C.10, subdivision 20; referendum revenue under section 126C.17; and
equity revenue under section 126C.10, subdivisions 24a and 24b; deleted text begin anddeleted text end

(2) for fiscal year 2003 deleted text begin and laterdeleted text end new text begin through 2013new text end , the sum of basic revenue under
section 126C.10, subdivision 2; referendum revenue under section 126C.17; and equity
revenue under section 126C.10, subdivisions 24a and 24bdeleted text begin .deleted text end new text begin ; andnew text end

new text begin (3) for fiscal year 2014 and later, the sum of basic revenue under section 126C.10,
subdivision 2, and referendum revenue under section 126C.17.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for fiscal year 2014 and later.
 new text end

Sec. 41. new text begin PHASE-IN.
new text end

new text begin Subdivision 1. new text end

new text begin Baseline revenue. new text end

new text begin A school district's baseline revenue equals the
revenue amounts for the aid appropriations calculated under Minnesota Statutes, section
126C.20, calculated using the current year's data and the revenue formulas in place in
Minnesota Statutes 2008.
 new text end

new text begin Subd. 2. new text end

new text begin New revenue. new text end

new text begin A school district's new revenue equals the revenue amounts
for the aid appropriations calculated under Minnesota Statutes, section 126C.20, calculated
using the current year's data and the revenue formulas in place under this act.
 new text end

new text begin Subd. 3. new text end

new text begin Phase-in schedule. new text end

new text begin A school district's revenue amounts for the revenue
formulas listed in subdivisions 1 and 2 equals the district's baseline revenue plus the
percent of the difference specified in subdivision 6 multiplied by the number of years
of the phase in specified in subdivision 7.
 new text end

new text begin Subd. 4. new text end

new text begin Aid. new text end

new text begin A school district's aid entitlement for the formulas listed under
this act equals the district's baseline aid plus the phase-in percentage times the new aid
amounts calculated under this act.
 new text end

new text begin Subd. 5. new text end

new text begin Levy. new text end

new text begin A school district levy for the formulas listed in this act equals the
levy for the same formulas calculated under Minnesota Statutes 2008, and the phase-in
percentage times the new revenue amounts for the levy calculated under this act.
 new text end

new text begin Subd. 6. new text end

new text begin Percentage. new text end

new text begin The phase-in percentage equals 25 percent.
 new text end

new text begin Subd. 7. new text end

new text begin Years of phase-in. new text end

new text begin The new revenue under this section is phased in over
four years.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2013.
 new text end

Sec. 42. new text begin REVISOR'S INSTRUCTION.
new text end

new text begin In the year 2014 and subsequent editions of Minnesota Statutes, the revisor of statutes
shall change all references to "adjusted marginal cost pupil units" to "adjusted pupil units"
and all references to "resident marginal cost pupil units" to "resident pupil units."
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2013.
 new text end

Sec. 43. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2008, sections 123B.54; 123B.57, subdivisions 3, 4, and 5;
123B.591; 125A.76, subdivision 4; 125A.79, subdivision 6; 126C.10, subdivisions 2b,
13a, 13b, 24, 25, 26, 27, 28, 29, 30, 31, 31a, 31b, 32, 33, 34, 35, and 36; 126C.12;
126C.126; and 127A.50, new text end new text begin are repealed.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2014.
 new text end

ARTICLE 10

FORECAST ADJUSTMENTS

Section 1.

Laws 2007, chapter 146, article 1, section 24, subdivision 2, as amended by
Laws 2008, chapter 363, article 3, section 1, is amended to read:


Subd. 2.

General education aid.

For general education aid under Minnesota
Statutes, section 126C.13, subdivision 4:

$
5,600,647,000
 .....
2008
$
deleted text begin 5,649,098,000
 deleted text end new text begin 5,644,263,000
 new text end 		.....
2009

The 2008 appropriation includes $536,251,000 for 2007 and $5,064,396,000 for
2008.

The 2009 appropriation includes deleted text begin $543,752,000deleted text end new text begin $533,760,000new text end for 2008 and
deleted text begin $5,105,346,000deleted text end new text begin $5,110,503,000new text end for 2009.

Sec. 2.

Laws 2007, chapter 146, article 1, section 24, subdivision 6, as amended by
Laws 2008, chapter 363, article 3, section 5, is amended to read:


Subd. 6.

Consolidation transition.

For districts consolidating under Minnesota
Statutes, section 123A.485:

$
240,000
 .....
2008
$
deleted text begin 339,000 deleted text end new text begin 21,000
 new text end 		.....
2009

The 2008 appropriation includes $43,000 for 2007 and $197,000 for 2008.

The 2009 appropriation includes $21,000 for 2008 and deleted text begin $318,000deleted text end new text begin $0new text end for 2009.

Sec. 3.

Laws 2007, chapter 146, article 1, section 24, subdivision 8, as amended by
Laws 2008, chapter 363, article 3, section 7, is amended to read:


Subd. 8.

Nonpublic pupil transportation.

For nonpublic pupil transportation aid
under Minnesota Statutes, section 123B.92, subdivision 9:

$
20,755,000
 .....
2008
$
deleted text begin 21,007,000
 deleted text end new text begin 20,739,000
 new text end 		.....
2009

The 2008 appropriation includes $2,124,000 for 2007 and $18,631,000 for 2008.

The 2009 appropriation includes deleted text begin $2,070,000deleted text end new text begin $2,037,000new text end for 2008 and deleted text begin $18,937,000deleted text end new text begin
$18,702,000new text end for 2009.

Sec. 4.

Laws 2007, chapter 146, article 2, section 46, subdivision 6, as amended by
Laws 2008, chapter 363, article 3, section 11, is amended to read:


Subd. 6.

Interdistrict desegregation or integration transportation grants.

For
interdistrict desegregation or integration transportation grants under Minnesota Statutes,
section 124D.87:

$
9,901,000
 .....
2008
$
deleted text begin 11,881,000
 deleted text end new text begin 11,947,000
 new text end 		.....
2009

Sec. 5.

Laws 2007, chapter 146, article 3, section 24, subdivision 4, as amended by
Laws 2008, chapter 363, article 3, section 14, is amended to read:


Subd. 4.

Travel for home-based services.

For aid for teacher travel for home-based
services under Minnesota Statutes, section 125A.75, subdivision 1:

$
207,000
 .....
2008
$
deleted text begin 227,000 deleted text end new text begin 237,000
 new text end 		.....
2009

The 2008 appropriation includes $22,000 for 2007 and $185,000 for 2008.

The 2009 appropriation includes deleted text begin $20,000deleted text end new text begin $21,000new text end for 2008 and deleted text begin $207,000deleted text end new text begin $216,000new text end
for 2009.

Sec. 6.

Laws 2007, chapter 146, article 4, section 16, subdivision 2, as amended by
Laws 2008, chapter 363, article 3, section 15, is amended to read:


Subd. 2.

Health and safety revenue.

For health and safety aid according to
Minnesota Statutes, section 123B.57, subdivision 5:

$
254,000
 .....
2008
$
deleted text begin 103,000 deleted text end new text begin 119,000
 new text end 		.....
2009

The 2008 appropriation includes $20,000 for 2007 and $234,000 for 2008.

The 2009 appropriation includes deleted text begin $26,000deleted text end new text begin $23,000new text end for 2008 and deleted text begin $77,000deleted text end new text begin $96,000new text end
for 2009.

Sec. 7.

Laws 2007, chapter 146, article 4, section 16, subdivision 6, as amended by
Laws 2008, chapter 363, article 3, section 17, is amended to read:


Subd. 6.

Deferred maintenance aid.

For deferred maintenance aid, according to
Minnesota Statutes, section 123B.591, subdivision 4:

$
3,232,000
 .....
2008
$
deleted text begin 2,627,000
 deleted text end new text begin 2,720,000
 new text end 		.....
2009

The 2008 appropriation includes $0 for 2007 and $3,232,000 for 2008.

The 2009 appropriation includes deleted text begin $359,000deleted text end new text begin $371,000new text end for 2008 and deleted text begin $2,268,000deleted text end new text begin
$2,349,000new text end for 2009.

Sec. 8.

Laws 2007, chapter 146, article 5, section 13, subdivision 2, as amended by
Laws 2008, chapter 363, article 3, section 19, is amended to read:


Subd. 2.

School lunch.

For school lunch aid according to Minnesota Statutes,
section 124D.111, and Code of Federal Regulations, title 7, section 210.17:

$
12,094,000
 .....
2008
$
deleted text begin 12,394,000
 deleted text end new text begin 12,298,000
 new text end 		.....
2009

Sec. 9.

Laws 2007, chapter 146, article 5, section 13, subdivision 3, as amended by
Laws 2008, chapter 363, article 2, section 40, is amended to read:


Subd. 3.

Traditional school breakfast; kindergarten milk.

For traditional school
breakfast aid and kindergarten milk under Minnesota Statutes, sections 124D.1158 and
124D.118:

$
5,583,000
 .....
2008
$
6,396,000
 .....
2009

new text begin The 2009 appropriation includes $4,825,000 for traditional school breakfast and
$1,076,000 for kindergarten milk.
 new text end

Sec. 10.

Laws 2007, chapter 146, article 9, section 17, subdivision 2, as amended by
Laws 2008, chapter 363, article 3, section 21, is amended to read:


Subd. 2.

Early childhood family education aid.

For early childhood family
education aid under Minnesota Statutes, section 124D.135:

$
21,092,000
 .....
2008
$
deleted text begin 29,324,000
 deleted text end new text begin 29,326,000
 new text end 		.....
2009

The 2008 appropriation includes $1,796,000 for 2007 and $19,296,000 for 2008.

The 2009 appropriation includes $2,144,000 for 2008 and deleted text begin $27,180,000deleted text end new text begin $27,182,000new text end
for 2009.

Sec. 11.

Laws 2007, chapter 146, article 9, section 17, subdivision 13, as amended by
Laws 2008, chapter 363, article 3, section 25, is amended to read:


Subd. 13.

Adult basic education aid.

For adult basic education aid under
Minnesota Statutes, section 124D.531:

$
40,344,000
 .....
2008
$
deleted text begin 41,712,000
 deleted text end new text begin 41,749,000
 new text end 		.....
2009

The 2008 appropriation includes $3,759,000 for 2007 and $36,585,000 for 2008.

The 2009 appropriation includes $4,065,000 for 2008 and deleted text begin $37,647,000deleted text end new text begin $37,684,000new text end
for 2009.

ARTICLE 11

TECHNICAL CORRECTIONS

Section 1.

Minnesota Statutes 2008, section 126C.10, subdivision 24, is amended to
read:


Subd. 24.

Equity revenue.

(a) A school district qualifies for equity revenue if:

(1) the school district's adjusted marginal cost pupil unit amount of basic revenue,
deleted text begin supplemental revenue,deleted text end transition revenue, and referendum revenue is less than the value of
the school district at or immediately above the 95th percentile of school districts in its
equity region for those revenue categories; and

(2) the school district's administrative offices are not located in a city of the first
class on July 1, 1999.

(b) Equity revenue for a qualifying district that receives referendum revenue under
section 126C.17, subdivision 4, equals the product of (1) the district's adjusted marginal
cost pupil units for that year; times (2) the sum of (i) $13, plus (ii) $75, times the school
district's equity index computed under subdivision 27.

(c) Equity revenue for a qualifying district that does not receive referendum revenue
under section 126C.17, subdivision 4, equals the product of the district's adjusted marginal
cost pupil units for that year times $13.

(d) A school district's equity revenue is increased by the greater of zero or an amount
equal to the district's resident marginal cost pupil units times the difference between ten
percent of the statewide average amount of referendum revenue per resident marginal cost
pupil unit for that year and the district's referendum revenue per resident marginal cost
pupil unit. A school district's revenue under this paragraph must not exceed $100,000 for
that year.

(e) A school district's equity revenue for a school district located in the metro equity
region equals the amount computed in paragraphs (b), (c), and (d) multiplied by 1.25.

(f) For fiscal year 2007 and later, notwithstanding paragraph (a), clause (2), a school
district that has per pupil referendum revenue below the 95th percentile qualifies for
additional equity revenue equal to $46 times its adjusted marginal cost pupil units.

(g) A district that does not qualify for revenue under paragraph (f) qualifies for
equity revenue equal to $46 times its adjusted marginal cost pupil units.